Godrej Industries forms bullish engulfing candle

The stock of Godrej Industries Limited has formed a bullish engulfing candlestick pattern on the daily time frame. The bullish engulfing candlestick pattern consists of two real bodies of opposite colours. The second day’s body completely engulfs the previous day's body. A large bullish candle suggests that it was a sudden and decisive shift to bullish sentiment.

Among the momentum indicators, the 14-period daily RSI is currently quoting at 25.83. The RSI is trading above its nine-day average and it is in a rising mode, which indicates further upward momentum. The weekly stochastic oscillator is also suggesting some bullish strength as per cent K is above per cent D. Moreover, the positive divergence is clearly visible between the daily RSI and stock price movement, which suggest limited downside.

Going ahead, if the stock sustains above Thursday’s session high of Rs 245 and trades convincingly above this level then, there is a high probability that Thursday’s lowest point of Rs 233.40 would become a temporary bottom for the stock.

On Thursday, the stock of Godrej Industries closed at Rs 242.30 per share, surged by 2.91 per cent. The stock opened at Rs 233.40 per share and hit an intraday high of Rs 245 and a low of Rs 233.40 per share on NSE.