Index continued its journey higher post smart recovery witnessed once 50 DEMA acted as support for sixth time in past 10 trading sessions. The occurrence of second “Bullish Engulfing” candleline post by various bullish formations confirmed the incremental strength in the 50 DEMA support zone near 11,600-11,640.
Daily RSI sustained post surpassing above its signal line and 50 levels attracted bullish momentum as expected while the move can continue targeting upper end of consolidation resistance placed at 12,140. Significant call writing at 11,800 levels depicts the base moving higher with the monthly expiry concentration band placed at 11,700-12,000. Only a breach below 11,560 levels could derail the larger bullish structure in place hence short term traders are advised to continue maintaining long short strategy at either end within the said range until meaningful breakout or pattern & volume confirmation is visible indicating a resumption of larger bullish trend in coming sessions.
Stock recommendation
COAL INDIA
Reco: BUY
CMP : 260.30
It is bouncing post 50 week EMA acting as support for 4 consecutive weeks. “Bullish Engulfing” followed by daily RSI surpassing its signal line suggests bullish momentum to kick in. On the hourly scale, the stock is consolidating in the range of Rs 253 - Rs 263 while underlying bullish strength building up for a larger move targeting its recent swing high of Rs 272 and Rs 276 gap resistance. The stock can be bought with stop place below Rs 253 consolidation support for Rs 276 to be obtained in coming sessions.
============================ Disclaimer: The analyst may have positions in any or all the stocks mentioned above.
To read the full story, Subscribe Now at just Rs 249 a month