Technical analysis is a mechanism to identify trading opportunities in the stock market by evaluating statistical data. The statistical data comprises price movement, trading volume, moving average, historical data, charts, breakouts, correct buy points, proper buy zones. This strategy is based on the assumption that the past trading activity of a stock can be an indicator of its future price movements when analysed with suitable rules of trading. This method analyses the ways supply and demand for a stock may drive changes in price, volume, and implied volatility. First time investors often get confused between fundamental and technical analysis. While both methods are used to research and forecast future movement in stock prices, both are different in nature. Like the name suggests, fundamental analysis evaluates a stock on its inherent value i.e. fundamentals. This method involves evaluating a company’s financial statements to estimate the fair value of the business. On the other hand, technical analysis is based on statistical trends and assumes that the stock price has already factored-in all publicly available information. More
Systematic Risk is a risk posed by outside factors affecting country or sector as a whole (policy decisions, interest rates, geo-political risks)
As long as the index holds the previous bullish gap zone of 17,566-17,632, the uptrend is expected to continue till 17,800-17,900-18,000, experts said.
Indraprastha Gas climbed 7.5 percent to Rs 408.1, the highest closing level since January 21 and formed large bullish candle on the daily charts with strong volumes for third consecutive session, following high wave kind of candle formation.
"As per the short term chart pattern, we feel the index will make an attempt to reach its resistance of 17,800 followed by 18,115. Our bullish view shall be negated if we see prices sustaining below 17,350 level," said Vidnyan Sawant, AVP - Technical Research at GEPL Capital
The Nifty50 opened higher at 17,712 and hit a day's high of 17,719, but overall the index remained in a tight range on the higher side, before closing with 124 points gains at 17,659.
Tata Chemicals share price jumped 12.2 percent to Rs 1,074, the highest closing level since October 19, 2021. The stock had a robust gap up opening and large bullish candlestick pattern formation on the daily charts with significantly higher volumes. It has decisively broken the long down sloping resistance trend line, adjoining October 18, 2021 and May 5, 2022, may be indicating bullish phase. Now the stock is around 7-8 percent away from its record high of Rs 1,158.
Tata Motors is in 'higher top higher bottom' formation on the daily chart which shows an up trend. Besides, the price has taken support at the 200-day moving average before the recent rally, said Rupak De of LKP Securities
Short-side traders should remain neutral and long-side players should keep a stop-loss below 17,440, Mazhar Mohammad of Chartviewindia has said
BASF India share price gained 5.4 percent to close at Rs 3,089.1, the highest closing level since March 31, 2022 and formed big bullish candle with large volumes on the daily charts. Also it has broken the long downsloping resistance trend line (adjoining August 11, 2021 and October 18, 2021) on Monday.
Puravankara has broken out on the daily chart on August 5, where it closed at highest level since July 25, 2022. Short term trend of the stock is positive as it is trading above its short term important moving averages.
Nifty has been making higher lows from the last seven weeks and supports are gradually shifting higher. It surpassed its immediate hurdle and is holding above its key moving averages which indicates strength in the ongoing trend to cross an immediate resistance trend line.
Titagarh Wagons is a classical uptrend where it is witnessing Bullish Flag formation with closing above its 20-DMA (day moving average). The upside momentum is likely to continue for an immediate target of Rs 150 while Rs 115 will act as a strong support level.
The bullish candle formation appears when the market closes above opening levels. Banking & financial services, auto, and metal stocks were the drivers in today's session.
With another higher bottom formation pattern formed from current levels, further continuation of the strong uptrend in Nifty Auto index can be anticipated with targets of 14,200 and 15,000 levels.
The momentum could get concentrated to fewer stocks and sectors and hence, traders need to be very selective in stock picking for trading, expert advises
Considering the bullish mood, the upcoming week can be approached with a low-risk strategy like Modified Call Butterfly in Nifty.
For Prince Pipes, the daily and weekly strength indicator RSI is in a bullish mode, indicating strength in the short to medium- term time frame
For the week, 17,500–17,650 remains a sturdy wall and until it is surpassed convincingly, tentativeness at higher levels will persist
Holding the Option beyond a certain point in time was Dysfunctional Risk. Since the extra holding period did not give enough rewards to justify the risk of Buying the Option.
Friday's low point (17,348) can act as a support in the next session followed by crucial support at 17,150-17,000 levels, while if it crosses the near-term resistance (17,500) in coming sessions, then the index can climb towards 17,800 levels, experts said.
Federal Bank, ICICI Pru Life Insurance, Oberoi Realty among the stocks. With the Sensex and the Nifty reversing losses after the RBI decision, experts say the Nifty’s next stop could be 17,800. Banking and financial services, FMCG, IT, metal and pharma stocks supported the market.
Redington (India) saw strong buying interest and had a gap-up opening on Thursday. It climbed 9.1 percent to Rs 139.55, and formed a large bullish candlestick pattern on daily charts with significantly higher volumes.
On the weekly chart of Alkyl Amines, the prices have shown a bounce on the upside. In the prior week, prices gave a breakout from the Falling Wedge pattern which is a bullish reversal pattern, said Vidnyan Sawant of GEPL Capital
The street may maintain caution till the meeting outcome and if the index gets back firmly above 17,450, then there is a fair chance of the index moving towards 17,800 levels, with crucial support at the 17,000 mark, experts said.
Dr Lal PathLabs witnessed an ascending triangle pattern breakout on July 29 which was placed above Rs 2,250 levels in the daily time frame. After breakout, prices are showing a gradual upside movement in a small steep formation.