Day trading guide: 2 stock recommendations for Friday
SECTIONS
Last Updated: Apr 29, 2021, 04:58 PM IST
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Synopsis
Nifty50 has reached slightly overbought levels on shorter time frame charts and a stiff resistance is seen between 14,950-15,000 levels. Failure to breakout of this hurdle immediately may trigger profit booking to levels of 14,750-14,650.
Agencies
RSI has turned lower from an overbought territory, suggesting a temporary pause before Nifty resumes its upward journey.
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Indian benchmark Indices ended a volatile expiry session marginally higher with a gain of 30 points, making it the fourth straight session of higher closing. Further, the Nifty50 index added 4% in this expiry amidst a spike in volatility. However, following the sharp up move this week, Nifty50 has reached slightly overbought levels on shorter time frame charts and a stiff resistance is seen between 14,950-15,000 levels. Failure to breakout of this hurdle immediately may t
Day trading guide: 2 stock recommendations for Wednesday
SECTIONS
Last Updated: Apr 27, 2021, 07:56 PM IST
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Synopsis
If bears push the index lower from this resistance zone of 14,680-14,700, it may trigger profit booking to levels of 14,550-14,500.
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Indian benchmark Indices, following a series of lower lows and lower highs in the past few weeks, have now started forming higher lows and higher highs. The indices closed in the green for the second session in a row. Further, Nifty50 index is also trading above the high of previous week and 20-DMA resistance placed at 14,580 is indicating bullishness. A sustained trade beyond the next resistance hurdle at 14,680-14,700 will extend the uptrend to levels of 14,800, which happens to be the 50-DMA and neckline of a Wolf Wave pattern. A further breakout from the bullish pattern may take the index to 15,000 levels.
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Indian benchmark Indices ended another volatile session of trade in the red with a cut of 60 points. The Nifty50 index started the week on a shaky note making it the third week wherein the index formed a lower low, clearly indicating corrective waves active at the moment. The previous support zone of 14,300-14,250 now stands broken and a sustained trade below 14,200 in the coming trading sessions would drag the Nifty50 lower to levels of 14,100-14,070.
Moreover, the index has already corrected 8 per cent from its high of 15,430 in a span of nine weeks. What is interesting to observe is, from the lows of 7,511 till its journey to 15,430, Nifty had witnessed three major corrections and all the corrections lasted for 2-3 weeks and the price correction was between 8-11%. We have already corrected 8% in the ongoing corrective wave.
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Indian equity markets started the trading week on a grim note as bears took the Dalal Street by storm following fresh restrictions imposed by the Maharashtra government, bringing several non-essential activities to a partial halt till 30 April amidst steep rise in Covid-19 cases. Benchmark index Nifty50 ended trade lower by 230 points or 1.54% at 14,637.80 following a recovery in the second half of the session from the lows of 14,459, down 400 points.
Further, the bulls need to push the index above 14,700 in the coming sessions for an extension of the short covering rally to levels of 14,750-14,800. However, failure to push beyond 14,700 could resume the corrections, dragging the index lower to levels of 14,550-14,450. Broadly, Nifty50 continues to oscillate in a wide range between 14,330-14,300 on the downside and 14,850-14,900 on the upside. A successful close beyond 14,900 would resume the uptrend.
Stop loss: Rs 1,075
Voltas has found it difficult to cross the Rs 1,100-mark. It has broken its swing low of Rs 1,040, indicating a change of the trend on the downside.
F&O Tracker
Analyst: Sagar Doshi – Technical Analyst, Research, Edelweiss Wealth Management
Both indices continued to witness short build up in the futures segment. FIIs long exposure on index futures at lowest level since October 2020. In stock futures, FII net long contracts at 3-years low. FIIs data is pointing towards distribution at current level.
Both the indices are trading in a narrow range with huge volatility. Due to small trading range, India VIX continued to make lower lows and closed at level of 20.2. Until the VIX closes below 20, there is a higher chance of volatility getting elevated than subdued.