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The benchmark S&P BSE Sensex advanced 14 per cent in CY19, while the Nifty50 and Nifty Bank indices added 12 and 18 per cent, respectively. However, the broader market underperformed thus giving a negative return for the second straight year.
Here's a look at how top three Sensex gainers of 2019 looked on charts -
Bajaj Finance Ltd (BAJFINANCE): The level of Rs 2,988, which was the high in 2018, became the most crucial level in 2019. The moment this level was crossed, it did witness minor sell off; however, thereafter this level was never seen. The counter crossed a milestone by hitting Rs 4,200, a rise of 40 per cent in merely six months. Around this level, one can see a Gap Up close in the range of Rs 3,750- Rs 3,763.90 levels on the weekly scale. CLICK HERE FOR THE CHART
Bharti Airtel Ltd (BHARTIARTL): The formation of “Inverse Head and Shoulder” pattern resulted in a jump towards Rs 480 levels, as per the weekly chart. During the same phase, the Moving Average Convergence Divergence (MACD) had a double bottom formation. There was a Golden Cross of 50-day moving average (DMA) with 100 DMA and 200 DMA on the weekly chart. CLICK HERE FOR THE CHART
Inverse Head and Shoulder is a technical indicator which is used to predict reversals in a downtrend. Usually, it involves two highs which the counter retests and sees correction. Among the three lows, one of the lows is below the rest two. The counter sees a breakout on the third attempt visualising the upside.
Moving Average Convergence Divergence (MACD) is an indicator that shows relationship with two moving averages called the MACD line. Then a nine-day EMA is plotted on the MACD which normally serves as a trigger for buy and sell.
Golden Cross is defined as an indicator of a major rally. It is essentially a crossover of short-term moving average crosses with the long-term moving average.
Double bottom is a formation that resembles “W” structure and says about the counter making two lower bottoms before breaking out.
ICICI Bank Ltd (ICICIBANK): This counter only once closed below the 200-DMA in the entire year. Likewise, the Relative Strength Index (RSI) witnessed a dip in the oversold region at the beginning of the year and that too was for only one session. CLICK HERE FOR THE CHART
RSI is a momentum indicator that determines the overbought and oversold conditions by measuring the magnitude of recent price changes. Developed by J Welles Wilder Jr, RSI shows that a stock is overbought when it breaches 70 value on a reading scale of 0 to 100 while it becomes oversold when it slips below 30 value. Overbought condition speaks about trend reversal or correction, whereas oversold region suggests undervalued price.
