Havells India forms double inside bar near 100-day EMA

Considering the daily time frame, the stock of Havells India Ltd formed a double inside day pattern near 100-day exponential moving average. The double inside bar is a price action candlestick pattern where two inside bars form successively. An inside bar is a bar whose high is lower than the high of the previous bar and its low is higher than the low of the previous bar. When double inside bars form, they indicate a lack of volatility, the market is said to be resting or at a point of equilibrium. Double inside bars are often followed by strong breakouts.

Going ahead, the consolidation range of Rs 745 to Rs 725 will be crucial for the upcoming session and any sustainable move above/below these levels along with supportive volumes will lead to major advance or decline.

The long term trend of the stock is positive as it is trading above its 100-day and 200-day exponential moving average (EMA). The stochastic has bounced back from the oversold zone and currently the fast stochastic is trading above its slow stochastic line. The minor positive divergence is clearly visible between the daily RSI, daily stochastic and stock price movement, which suggest limited downside.

On Monday, the stock of Havells India Ltd closed at Rs. 732.10, a dip of 0.81 per cent. The stock opened at Rs. 735 and hit an intra-day high of Rs. 738.05 and a low of Rs. 729.70 on the BSE.