On the weekly chart, the stock confirmed its breakout from the Bullish Cup & Handle pattern on Thursday. The volume activity too started accelerating which support our hypothesis, says Aditya Agarwal of Way2Wealth Brokers.
By Aditya Agarwal
The Thursday’s sharp up move in Indian markets can be termed as a Bear Trap as Nifty opened higher with a significant gap and eventually surpassed the crucial resistance zone of 10280 – 10300 levels.
In that process, Nifty confirmed its breakout from ‘Downward Sloping Channel’ pattern.
The bearish engulfing candle formed on Wednesday’s trade was negated as Nifty closed above the pattern high of 10280.
At this juncture, the hourly RSI (14) signals a Bearish Divergence hence it’s prudent to wait for some pullback to enter a long position. On the higher side, Nifty is likely to extend its ongoing short covering move towards 10450.
Whereas on the lower side, 10100 will act as a strong support and till the time index is holding above this level every meaningful correction is an opportunity to enter in the long position.
Apollo Tyres: BUY around 290 – 288| Target 340| Stop loss 270| Timeframe 15 to 21 sessions| Return 16%
On the weekly chart, the stock confirmed its breakout from the Bullish Cup & Handle pattern on Thursday. The volume activity too started accelerating which support our hypothesis.
The daily as well as weekly RSI (14) entered inside the 60 levels. The conservative target of cup & handle formation comes near Rs 340. A stop loss should be placed below Rs 270.Disclaimer: The author Head Technical Research, Way2Wealth Brokers Pvt. Ltd. The views and investment tips expressed by investment expert on Moneycontrol.com are his own and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.The Great Diwali Discount!
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