The next positive catalyst may be a sharp refining margin recovery, which is more of a H2CY21 story, says JP Morgan
Once traders get a hold of technical analysis, their behaviour tends to become exaggerated.
HDFC twins are nearing all-time highs while Bajaj group stocks have seen a tremendous surge in the ongoing November series.
VRL Logistics has maintained a strong base near Rs 145 level.
For Sensex, Nifty50, and Nifty Bank, the underneath trend is bullish till the crucial support levels are held on a closing basis.
When it comes to choosing a risky investment, market participants opt for stocks with higher standard deviation that provides volatility, which can be used for quick profits.
A confirmed breakdown reflects upcoming selling pressure when significant levels are expected to get broken. Even investors look for early exits.
A trendline breakout on the monthly chart asserts that the stock or index is ready to move higher, with an optimistic outlook.
Out of these 344 stocks, 211 stocks are trading with a positive crossover. This scenario indicates that over 50 per cent stocks are signalling positive bias.
A number of market participants trade only on the basis of support and resistance zones. This seems risky, but over the years, this theory has proven to be a reliable trading model.
As of now, the downside is limited in mid-cap banks with volumes staying subdued.
The technical analysis revolves around three major indicators: the price indicator, volume, and basic technical indicators that determine strength, oscillation, and momentum.
The golden ratio is typically translated into three percentages: 38.2 per cent, 50 per cent, and 61.8 per cent, which are considered key retracement levels for a stock or an index.
This pattern signals a bearish sentiment and one should be cautious once this pattern is visible on the charts.
Failure to exit a trade may create disparity on the breakout strategy.
With the benchmark indices trading in a narrow range on Monday, here are key levels for index heavyweights that can help you plan your trading strategy.
The most widely used, the 200 DMA, is a technical indicator used to analyse and identify long term trends
This is viewed as an extremely bullish pattern as continuous three positive closes indicate the beginning of a strong buying
For Nifty IT, the immediate support comes in at 16,400 levels on a closing basis and the rally should move towards 17,500 and 17,700 levels.
Whenever the 'Aroon Up' shows sideways movement, the price is expected to show mild-to-severe correction, but it helps to identify the upcoming change.