Weekly F&O expiry terminated on a weak note as Nifty-50 Index ended trade lower for third day in a row. Further, the index has formed Three Black Crows — the formation of three bearish candles in a row. However, bulls did step in at the key support zone of 18,050 which happened to be a trendline support and 50% Fibonacci retracement of the previous upmove, triggering a swift short covering rally.
A sustained trade above 18200 in the coming sessions will extend this short covering to levels of 18,320-18,400. On the downside, crucial supports are now placed at 18,100-18,050 which the bulls should defend in the event of any intraday corrections. Moreover, RSI indicator has also turned upwards from oversold territory on shorter time frame chart confirming weakening bear trend and a possible short covering rally in the coming sessions. Therefore, with 18,050-18,000 as major support zones on the downside traders can look at building long positions keeping this support area as a stop loss.
Finance | Buy @CMP of Rs 614
Target: Rs 655
Stop Loss: Rs 585
The stock is on the verge of a breakout from an Ascending Triangle pattern neckline placed at 624, a successful breakout on volumes will resume the uptrend taking the stock higher to levels of 655. Further, RSI indicator is also confirming the bullishness.
| Buy @CMP of Rs 1,175
Target: Rs 1,300
Stop Loss: Rs 1,100
The stock is on the verge of a breakout from a sideways consolidation phase suggesting bullishness building up here. Further, RSI has turned higher from the previous reversal zone of 25 confirming bullishness building up.
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