Whenever the Nifty pharma index has dipped below oversold territory on the Relative Strength Index (RSI), it has seen a stable rise.
Mindtree will see an upside bias once it breaks out above Rs 920 levels
On a year-to-date basis, the benchmark Nifty is down around 14 per cent
Barring Wipro, all the other major tech companies have outperformed the benchmark Nifty50 index which has slipped 7.6 per cent till date in 2020
The study of the same recurring patterns in the financial markets assists in developing trading strategies
Relative Strength Index (RSI) determines trend strength by identifying the oversold and overbought condition
The Nifty 50 is trading around 200-DMA; if the selling pressure mounts then the index may see big selling pressure on stocks
The overall trend in the paint stocks remains bullish and any corrective move may see buying opportunities.
Simply put, a stop-loss is designed to limit an investor's loss on a stock. Setting a stop-loss order for 15 per cent below the price at which you bought the stock will limit your loss to 15 per cent.
The benchmark indices are holding the positive sentiment
Except Sun Pharma and Lupin, others have grown significantly and are showing less reversal signals.
Major hits were seen in front runners such as ACC Ltd, Ashok Leyland, and HDFC.
A candlestick defines the price movement and depending on the formation, one can determine the current sentiment and predict a trend.
Most stocks are witnessing selling pressure at higher levels. If that gets conquered, a fresh upside of 3-5 per cent is expected to happen.
Except Voltas and Britannia, others may see selling pressure on every upside.
In a bearish market, or where the trend starts to turn negative, traders and investors need to be extra careful while executing a trade
IRCTC has risen over 50 per cent in just eight sessions. Bajaj Finance, YES Bank and Godrej Properties have also rallied in trade since the last few sessions. Here are the trading strategies
Hindustan Unilever may rally towards Rs 2,300 if it trades above Rs 2,150 levels.
Godfrey Phillips is approximately Rs 100 away from the lifetime high of Rs 1,572 level.
All the major cement stocks are trading with breakouts, signaling higher levels in the coming sessions. Any boost in Budget may trigger another 10 per cent rise in a short span