The Nifty is now trading above 20-DMA, 50-DMA, 100-DMA, and 200-DMA on daily as well as weekly time frame which is a clear sign that prices are in complete control of bulls.
Indian market rallied by more than 3 percent for the week ended October 1. The S&P BSE Sensex reclaimed 38,000 while the Nifty50 closed above 11,400 levels.
Interestingly, the Nifty is now trading above 20-DMA, 50-DMA, 100-DMA, and 200-DMA on daily as well as weekly time frame which is a clear sign that prices are in complete control of bulls.
The index is trading above crucial short and long-term moving averages but it is also trading near crucial resistance levels. Hence, a decisive close above 11,500-11,600 levels is required for bulls to remain in control.
“Strong buying will emerge on a decisive trade above 11,630 levels which is the previous three week’s high. Price Momentum Indicator (PMI) has given bullish crossover with its average and as long as it in buy mode, one can maintain buy on dip strategy,” Shabbir Kayyumi, Head of Technical Research at Narnolia Financial Advisors Ltd told Moneycontrol.
“However, confirmation of the original trend will come on a breakout of the slanting trend line which is standing near 11500 psychological marks. Moreover, Nifty can trade in a range of previous high standing around 11800 and crucial point of polarity placed at 11111 for the coming weeks,” he said.
We have collated a list of top 10 buy or sell short term trading ideas by various experts for the next 3-4 weeks:
Expert: Rajeev Srivastava, Chief Business Officer at Reliance Securities
The stock has bounced from its long-term support zone and has witnessed positive pullbacks over the past few days.
The RSI has also turned positive on the weekly charts that indicate limited weakness in the stock which could give an upward breakout.This could bring the stock to test the long term moving average being as the potential target over the next few months.
The stock has retraced back from its long-term averages after a correction from the highs of 565 levels in the last one month.
We believe it has completed its price and time-wise correction and we now expect it to outperform from current levels over the next few weeks.
Thus, for trade, a long position can be initiated for the target of Rs.585 with a stop loss of Rs.475
The stock has bounced from its 200-Days average and has retraced almost 50 percent of the current up move of (100-50) levels near 125 levels.
The sector is in positive momentum and RSI crossing upwards from its average line gives an confirmation of a strong move.
On the higher side, we expect the stock to test the recent highs of 155 levels and recover the prior damages over the next few weeks.
Expert: Expert: Shabbir Kayyumi, Head of Technical Research at Narnolia Financial Advisors Ltd
The scrip spurted from a low of 400 and formed a Morning Star candlestick pattern. It showed pullback on the upside that marked the high of 445.
Currently, it is waiting for the breakout on the upside so that it can accelerate buying momentum further. The emerging line of polarity on the daily time frame chart is suggesting bullish momentum in the scrip.
Indicators and oscillators are also showing a conducive scenario in the coming sessions. Based on the mentioned technical structure, one can go long in the scrip around 430 for the target of 495 and 520 marks with stop loss below 395.
The initial signal of a trend reversal buying can be seen in the weekly chart as it found support from its key moving averages on the daily chart.
The momentum indicators have started trading in a bullish zone. On the daily time frame, it has formed a double-bottom pattern that suggests buying in the scrip.
Positive crossover of medium-term moving averages also giving cues to take long position in the stock. Traders can initiate buying at the current market price 160 for the short term gain of 180 & 190 with a stop loss below 148.
The short-term correction seems to be over in the stock and bulls are likely to take the charge again. The formation of a Cup and Handle price pattern on the daily timeframe suggests that bulls have entered the counter at lower levels.
Further, the line of parity on the daily chart is providing good support which gives an additional signal that the short-term rally might not be ruled out in the coming days.
Traders can initiate long positions around 900 with a stop loss below 855 and the target of Rs 980.
Expert: Abhishek Chinchalkar of FYERS
After breaking the prior resistance of 1915, the stock has taken support twice at this level. This suggests that the 1915-1900 zone has switched its role from resistance to support.
Also, the stock is showing strong upside momentum on the daily chart, while the daily RSI has been moving within the bull market zone since April.
The stock is trading within a falling wedge pattern and is now nearing the breakout level of this pattern.
Also, after having retraced nearly 38.2% of the rally from March lows to August highs, the stock has turned higher, indicating at a possible resumption of the prior uptrend.
The immediate hurdle is now at 840. Once that is crossed, a short-term up move can be expected.
The stock broke out of a falling wedge pattern last week, which signals at a move higher in the days ahead.
After having retraced 38.2% of the rally from March lows to July highs, the stock has turned higher, which indicates at a possible resumption of the prior uptrend.Disclaimer: The views and investment tips expressed by experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.