On the daily chart, Nifty50 has given a wedge pattern breakout which falls on January 3, 2022 and has given a refund of 3.50 percent to date without meaningful correction. Meanwhile, in a broader (weekly) time frame, prices have provided a bullish flag and price breakout inching near the previous high level of life, which is placed at 18.600.
The index structure supports Bulls. Permanent market area 2: 1 with 35 shares on the advanced side and 15 shares on the declining side. Prices on the daily chart are traded in higher upper formations.
A few weeks return prices are under a little pressure and traded below the exponential moving average of 21 & 50 days but a strong breakout this week has forced the price to close above the average daily time frame.
Nifty50 is likely to be closed near the previous resistance zone which is placed at 18.600 and if the index managed to cross above the level then 19,000 will be on the card soon. Direct support for the index is placed near the level of 17,900.
Bank Nifty after forming a hammer candlestick pattern on a weekly chart, prices have shown a strong reversal on the higher side and has received support on the 21-week exponential moves on weekly chart. Important support is now at 37,600-37,200 and the resistance is placed near 39,200-39,500.
Here are three buying calls for the next 2-3 weeks:
Tata Motors: Buy | LTP: RS. 507.25 | Stop-Loss: RS 485 | Target: RS 547 | Back: 7.8 percent
Prices are traded in the symmetrical triangle formation for the past half a month and have formed a trend line resistance at the RS 498 level.
Stock has broken from the ribbon over the pattern at the level of Rs 503.70 on January 10 and the price has registered a decisive breakout that shows changes in the upside down trend until it is reversed. Stock traded above the exponential moving average of 21, 50 & 100 days on the daily time frame, which is positive for prices in the near future.
Indicator MACD (Moving Average Divergence Divergence) is reading above its midline with a positive crossover above its signal line. The Momentum Oscillator RSI (14) (relative strength index) is reading near 60 levels that show positive momentum will continue to move forward.
Indus Towers: Buy | LTP: RS 275.80 | Stop-loss: RS 262 | Target: RS 302 | Back: 9.50 percent
Stocks have been traded with lower low low formations since the last three months and have formed a wedge formation that falls on a daily time frame.
On January 12, the price has given a breakout of the downstairs trend line connected to the falling wedge pattern and stock can be closed above the exponential moving average of 21 & 50 days.
Bullish breakout in low low low formations shows a positive surge on the positive side. The Momentum Oscillator RSI (14) reads close to 60 levels that show positive momentum will like to move forward.
Tata Communications: Buy | LTP: Rs 1,557.70 | Stop-Loss: RS 1,460 | Target: RS 1,750 | Back: 12 percent
Prices are traded in the formation of head & shoulders overturned over the past five months and have formed a neckline resistance at the level of Rs 1,520.
Communication Tata has broken out of the reverse head pattern & shoulder and the price has registered a decisive breakout that shows a trend change from the side until it is reversed. Of the last three to four trading sessions, we have observed the volume activity above the average at the counter which also suggested the price volume breakout at the daily time frame.
Stock traded above the exponential moving average of 21, 50 & 100 days on the daily time frame, which is positive for prices in the near future.
The MACD indicator is reading above its midline with a positive crossover above its signal line. The Momentum Oscillator RSI (14) reads above 60 levels that show positive momentum will like to move forward.
