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%
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