The Nifty50 on the daily time frame is trading near the upper band of the rising channel pattern and currently facing a stiff resistance of its overhead trend line which is placed near 15,450 levels.
The Nifty50 on February 17 witnessed a minor gap-down opening and traded in a narrow range for the first initial hours and later on the index slipped below the 15250 levels and continued its lower low formation on the smaller degree chart (15 mins).
The benchmark index has almost completed a 161.80 percent Fibonacci price extension from its previous intermediate bottom on the daily time frame.
Currently, India VIX is reading within the narrow range of 20.50 -22.50 on the daily chart. Meanwhile, INDIAVIX continues to settle below its 21-day exponential moving average (EMA) which indicates volatility is losing its grip.
Higher high-higher bottom formation continues in the BANK NIFTY where prices registered their lifetime high levels of 37,708.
The momentum oscillator RSI (14) of the Bank Nifty has flattened out near 75 levels (overbought zone) on the weekly time frame. Flattening of momentum oscillator at or near the overbought zone indicates banking index may go through some profit-booking or a sideways consolidation in the coming trading sessions.
Going forward, the trend in Nifty is likely to remain sideways or we can expect some profit-booking till 14,900 levels. The higher-end break of 15,450 will open the gates for 15,650 levels in the coming trading sessions.
Here is a list of the top three trading ideas for the next 3-4 weeks:
L&T Finance Holding: BUY| LTP: Rs. 97.90| Target: Rs 109|Stop Loss Rs. 92|Upside 11%
The price has witnessed a Falling channel pattern breakout on the weekly time frame and is currently trading above the trend line support.
The stock has found support near 23.60 percent Fibonacci retracement which is placed at 87.20 from its previous March month's low on the weekly interval.
A recent minor retracement has found support near a 50-day EMA and currently, the price is trading above its 50 & 21-day EMA which is positive for the counter in the near term.
The momentum oscillator RSI (14) is reading above 60 levels with a bullish crossover on the weekly time frame.
D-Mart: Buy| LTP: Rs. 3187| Target: Rs 3430| Stop Loss: Rs 3050| Upside 7.6%
On February 17, the stock price finally surpassed the resistance zones around Rs 3,140 - Rs 3,170 levels, which eventually confirmed a trend line breakout on the weekly interval. The recent leg of strong up-move is also supported by strong volumes and it also resembles a strong consolidation breakout. Since the last four odd months, the counter is trading in a higher bottom higher high formation. Prices are also trading above their exponential moving averages (50 & 100) on the weekly chart. Momentum Oscillator RSI (14) is reading above 60 levels with a positive crossover, which is positive for the counter. The MACD indicator is reading above its line of polarity with positive sentiments.
Hindustan Unilever Ltd: SELL| CMP: Rs. 2164| Target: Rs 2050|Stop Loss: Rs. 2235| Downside 5%
Since the last couple of months, the stock price has been trading in a lower low-lower high formation on the daily time frame.The price has witnessed a smaller degree triangle pattern breakdown on the daily interval. The counter is trading below its 21, 50 & 100-day exponential moving averages on a daily scale.The momentum oscillator RSI (14) is reading below 45 levels with a bearish crossover and looking to drift lower below 30 levels.
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