By Rohan Patil
It was a quite volatile week exactly where Nifty traded with a mixed bagged and registered its lifetime higher of 16701.85 levels on 18th Aug and formed a bearish dark cloud cover candlestick pattern for the duration of the closing and continued its promoting and confirmed the bearish pattern setup by closing beneath the bearish dark cloud cover pattern in its next trading session.
We are also approaching the 20th anniversary of the Taliban’s removal from energy in Afghanistan at the hands of US-led coalition forces. Now that the Taliban has once more prevailed, we need to think about regardless of whether its victory more than the world’s most highly effective military and the biggest economy will have any implications for the dollar and its part in the world.
The Benchmark index has formed a bearish harami candlestick pattern in the weekly time frame at the all-time higher levels, the bearish pattern will be confirmed when the costs will close beneath the harami pattern. Momentum oscillator RSI (14) has dropped sharply from its overbought levels and at the moment reading at 65 levels with bearish crossover on the everyday interval.
The instant assistance for the Nifty is placed close to 16200 levels and resistance is pegged close to 16700 levels.
BANK NIFTY
Bank Nifty has witnessed an upward increasing trend line breakdown on 20th Aug on the everyday time frame. On the weekly chart, costs have drifted for more than 3 per cent and have closed beneath its trend line assistance.
Prices have made several attempts to break the resistance levels placed at 36300 – 36400 levels but had been unable to breach the upper band of the horizontal trend line on the everyday scale. Prices have drift beneath their 21 & 50-day exponential moving averages on the everyday interval.
Bank Nifty has constantly underperformed the Benchmark index on all the time frames which is visible of relative strength (RS) indicator. The majority of the indicators & oscillator has indicated a unfavorable trend for the banking index.
The banking index has filled its runaway gap which was developed on 4th Aug due to a gap up opening. Currently, costs are trading in the middle of the rectangle pattern and the decrease band of the pattern is supported with a one hundred- day exponential moving typical.
The instant assistance for the Bank Nifty is placed close to 34400 levels and resistance is pegged close to 36200 levels.
On the everyday chart AUROPHARMA has completed ‘Bullish Crab Harmonic pattern’ the coordinates of which are:
XA leg is from 797.30 to 1063.90
AB from 1063.90 to 917.75 (which is 61.80% of XA leg),
BC leg is from 917.75 to 1013 (which is 61.80% of the AB leg) and
CD leg is 1013 to 681.05 (which is 361.80% projection of BC leg & 161.80% retracement of XA leg).
Momentum oscillator RSI (14) has reached close to intense oversold level (10) and a sharp bounce back from the existing level can not be ruled out. Volume activity has elevated drastically from the previous couple of trading session indicates accumulation phrase in the oversold circumstances.
Based on the above Technical research we can come out with a view that the price tag might move towards greater levels more than a quick period.
Bharti Airtel: Invest in
CMP: Rs 613.70 | Target Rs 660
Stop Loss Rs 590 | Return 07.50%
BHARTI AIRTEL has witnessed a retracement close to its trend line assistance post-breakout of a triangle pattern on the weekly time frame. Prices have retraced 23.60 % from their preceding intermediate higher of 644 levels.
Stock is trading above its 21, 50 & one hundred- day exponential moving averages on everyday time frame, which is positive for the costs in the close to term. MACD indicator is reading above its centerline with positive crossover above its signal line. Momentum oscillator RSI (14) is reading close to 60 levels which indicates positive momentum will like to continue ahead.
(Rohan Patil is a Technical Analyst at Bonanza Portfolio. The views are expressed are the author’s personal. Please seek advice from your economic advisor just before investing.)