17 Aug , 2022 By : Monika Singh
On Tuesday, the benchmark index Nifty gained 130 points while the Sensex was up by 379 points. Among Sectors, Auto and Reality indices outperformed. Auto gained 2.5 per cent and Reality index rallied over 2 per cent. whereas some profit booking was seen in PSU Banks and Media stocks. Technically, after a gap-up opening, the index held the positive momentum throughout the day which is broadly positive. It also held the higher bottom formation on intraday charts. For the trend following traders now, 17750 and 59650 would be the trend decider levels for Nifty and Sensex respectively. Above which, they could hit the level of 17900-17925 and 60000-60200. On the flip side, quick intraday correction possible, if the indices succeed to trade below 17750 and 59650. Below which, they could retest 17700-17650 and 59500-59300.
On the weekly scale, post reversal from its multiple support levels, the counter is trading into a rising channel pattern forming the higher top and higher bottom series continuously. The strong bullish activity on the daily chart suggest that the counter is likely to maintain bullish continuation formation in the near term.
The stock has given a breakout of its Ascending Triangle chart pattern with a strong bullish candlestick. Additionally, on the daily charts, it has formed a higher bottom formation, hence the structure of the counter indicates the beginning of a new up move from the current levels.
For the last few sessions, the counter was stuck in a range-bound move near its important retracement levels. Presently it has given a range breakout with a strong bullish candlestick formation. The rising volume activity near the retracement support zone is suggesting that the stock has good strength for further upside.
After the sharp up move, the stock is trading in a range-bound movement well above its short term moving averages. As a result, the formation of a Flag chart pattern on the daily scale is formed which points to bullish movement to resume in the coming horizon.
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