28 Feb , 2021 By : Debdeep Gupta
Aditya Agarwala
Senior Technical Analyst, YES Securities
It was a bloodbath in the Indian equity markets on the last trading day of the week as Nifty-50 Index ended with a massive cut of 4%. Further, relentless selling by the bears after a GAP down opening pushed the Nifty-50 Index below its recent support zone of 14,630 indicating weakness; though the selling halted at the 50-DMA placed at 14,440 which also happened to be the GAP support area. Sustained trade below this support of 14,440 will extend the corrections to 14,330-14,300 levels. Technical indicator RSI has also turned down from the bear upper territory of 60 confirming bearish sentiments prevailing at the moment. However, on the flip side, a trade beyond 14,650 will trigger a short-covering rally taking the Index back to levels of 14,800.
Equity recommendation:-
1. DLF Futures
The stock is on the verge of a breakout from trendline support placed at 300 levels, a breakdown from this support on healthy volumes will trigger a sharp bear trend reversal. Further, the stock has formed a lower high indicating weakness. RSI has turned down from the bear upper end of 60 suggesting a bearishness.
2. BLUESTARCO
The stock has turned upwards after breaking out of an inverted head & shoulders pattern neckline. Further, volumes have been good leading up to breakout suggesting bullishness. RSI is also favoring an extended uptrend.
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