The Index closed in the negative territory in the last trading session, however, the last weekly close was quite positive and it had formed a “Hammer” candlestick pattern which is a bullish reversal pattern. On the lower side, 11,250 is a crucial support where on the upside minimum target comes to 11,550, hence we recommend maintaining long positions.
The stock seems to have completed a five wave declining structure on the weekly charts and a reversal from lower levels has happened. A minimum of 38.2% retracement of the entire fall is expected, hence in anticipation of a bounce one can buy for the target of 875 with a stop loss of 755.
The stock has formed a “Hammer” candlestick pattern on the weekly charts. It has also started to form higher tops and higher bottoms which is also a positive sign. The momentum indicator MACD is well in buy mode on daily charts as well as weekly charts, hence we recommend buying this stock.
The stock has provided a breakout from the downtrend line resistance with an increase in volumes and positive crossover in its momentum indicators which increases the probability of an upside.
Disclaimer: The analyst may have positions in any or all the stocks mentioned above.
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