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How to trade RIL, SBI, ITC, HUL, HDFC, HDFC Bank post F&O expiry

Trading strategies for index heavyweights based on their technical chart patterns

Avdhut Bagkar  |  Mumbai 

Markets, Stocks, BSE, NSE
Photo: Shutterstock.com

NIFTY50: The index recovered after dipping below 50-DMA (day moving average) on Wednesday. A candlestick form resembling "Hammer" was seen on the chart, signifying a trend reversal. Following sharp gains in the US market overnight, the Nifty index conquered 10,800 immediately on opening amid the expiry of derivative contracts. The index, however, witnessed resilience around 10,800 and closed slightly below it.

Click here for the chart

A revival in a trend indicates upward rally towards the breakout level of 10,985 as per daily chart. The rollover data stood at 74 per cent compare to last month’s 71 per cent. The Nifty IT index rolled over higher to 78 per cent, however BankNifty index rolled over lower to 64 per cent.

RELIANCE INDUSTRIES (RIL): The stock has a strong support of 200-DMA at Rs 1025, which was last seen during October. The said average has moved up gradually with a rise in the stock price. December saw the counter retesting Rs 1050 mark and is currently trading around Rs 1,060 levels. The technical oscillator (relative strength index) & Stochastic have seen a positive crossover. A breach of Rs 1,160, which also is its resistance level, can take it and further up to Rs 1200.

STATE BANK OF INDIA (SBI) : The stock needs a strong rally above Rs 300 with decisive breakout in volumes, as per daily chart, to move higher. It has failed to sustain above Rs 300 faces selling pressure and lower follow-up buying. The Moving Average Convergence and Divergence (MACD) made a positive crossover recently, which indicates buying to resume if the current level (Rs 290 - 285) are sustained, chart suggests.

BANK : The stock is currently trading 5 per cent lower than its life-time high. The daily chart shows formation of "Flag Pattern", which means that the stock is likely to trade sideways after a sharp rally. The higher side resistance comes at Rs 2140 - Rs 2160; a sustainable close around this range may trigger another sharp rise in the stock that may lead to Rs 2220 - Rs 2250 levels, pattern suggests. The support comes in the range Rs 2040 - Rs 2060.

: The daily chart indicates "Bullish Pennant" formation. The stock has rallied over the past few sessions, making a high of Rs 2020 and formed triangular pattern. The lower side support comes at Rs 1860, a level on the verge of "Golden Crossover" by 50 DMA and 200 DMA. The upward resistance comes at Rs 1980, the falling trendline level as per chart.

(A is a candlestick pattern that is a bullish signal in which a relatively short-term moving average crosses above a long-term moving average.)

: The stock is consolidating and is hovering around 200 DMA (Rs 265 - Rs 295) since October as per daily chart. The is resilient to conquer 60 level. The rise in above zero line may add buying strength and help it break out of the consolidation phase, charts suggest. If it does happen, the counter can hit Rs 295.

HINDUSTAN UNILEVER : The stock has a "Golden Crossover" of 50 DMA and 100 DMA as per daily chart. The recent low of Rs 1740 stays as immediate support with trend rising towards Rs 1860 - Rs 1880. The weekly chart clearly denotes support of 50 DMA witnessed in the month of October.

First Published: Fri, December 28 2018. 07:50 IST
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