Technical calls: Two Trades for At the moment: An FMCG main for 3.5% acquire, a large-cap oil refinery inventory for six% rise
Nevertheless, by afternoon, the Nifty had given up all its good points and had additionally slipped into the destructive zone, forming its day’s low level. The rest of the session was spent in a really slim vary. The headline index closed with a minor acquire of 12.50 factors (+0.05)
Whereas the markets proceed consolidating at present ranges, some defensive performs are evident. This FMCG main is steadily inching greater; it’s anticipated to increase its present upmove over the approaching days.
ITC Restricted (ITC) suffered a pointy corrective transfer after the inventory traded in a spread between November and February of final yr. It made a powerful try and put a base in place by the top of February; since then, it has steadily trended greater. Presently, it’s buying and selling above two of its three key shifting averages. Moreover, it has closed above its 20-period MA as effectively.
The day by day MACD is bullish and stays above its sign line. The RSI additionally stays impartial and doesn’t present any divergence towards the value. The surge that led the inventory cross above the 20-DMA has come on a lot higher-than-average volumes.
The RS line is trending sideways indicating the inventory buying and selling in keeping with the broader markets. It has crossed above its 50-period MA.
The inventory is seen enhancing its relative momentum whereas contained in the lagging quadrant of the RRG. The extension of the present upmove is more likely to maintain and take ITC greater to Rs. 445. An in depth under Rs. 422 have to be used as a stop-loss for this commerce.
Milan Vaishnav, CMT, MSTA, is a Technical Analyst.
This massive-cap oil refinery inventory broke out from the horizontal trendline resistance. This might set off a possible upmove within the inventory by shut to six%, and this makes the present ranges engaging to enter with a good risk-reward ratio.
After forming a short triple-top at Rs. 183 in September final yr, the inventory worth of Indian Oil Company Restricted (IOC) witnessed a corrective decline. The downtrend continued till it shaped a backside at Rs. 110 in March this yr and confirmed indicators of a rebound.
Whereas shifting greater, the inventory crossed above the 50-day and 100-day MA, indicating that the intermediate development had turned bullish.
Just lately, the inventory broke out from the horizontal trendline resistance, inviting shopping for alternatives.
This worth motion has been backed by elevated quantity, supporting bullishness.
The Relative Energy Index (RSI), a lead indicator, noticed a bullish divergence. The worth had shaped a decrease backside in March, however the RSI shaped the next low, including additional bullishness to the inventory.
PSAR continues to stay in purchase mode.
Thus, the formation of upper tops and better bottoms, breakout from the resistance stage, elevated volumes, and PSAR in a purchase mode lays the bottom for a possible upmove within the inventory by 6%. Any transfer under Rs. 137 ought to be thought of for shifting out of the inventory.
Foram Chheda, CMT, is a Technical Analysis Analyst.
