Technical stocks to watch out for on Thursday

Aditya Birla Fashion and Retail Ltd: The stock has formed a reversal Gravestone Doji candlestick pattern as on June 15, 2020, and thereafter, witnessed a correction. Considering the daily timeframe, the stock has given a breakout of the Falling Wedge pattern. This breakout is confirmed by robust volumes. With this breakout, the stock has also managed to close above its short-term moving averages, i.e. 8-day EMA and 13-day EMA. The leading indicator, 14-period daily RSI, has given positive crossover, which is positive for the stock. The daily stochastic oscillator is suggesting some bullish strength as well since per cent K is above the per cent D. Hence, we expect the bias to remain positive as long as the stock sustains above the Wednesday’s low of Rs 112.10 level. On the higher side, the level of Rs 125, followed by Rs 130, would be seen as the next resistance zone for the stock.

Hero Motocorp Ltd: The stock has given a downward sloping trendline breakout as on April 08, 2020, and thereafter, marked the sequence of higher tops and higher bottoms. On Wednesday, the stock has formed a reversal Evening Doji Star candlestick pattern. Evening Doji Star is a reversal candlestick pattern which is bearish in nature and appears at the end of an uptrend. Among the momentum indicators, the 14-period daily RSI has cooled off after touching the 72 zone and at present, its reading is 61.85. The RSI is trading below its nine-day average and it is in a falling mode, which indicates a further downside momentum. Moreover, there has been a negative divergence between the daily RSI and the stock price movement, which suggests limited upside. Going ahead, if the stock sustains below Wednesday’s session low of Rs 2,753.05 and trades convincingly below this level then, there is a high probability that Tuesday’s high point of Rs 2,885.70 may become a temporary top for the stock.

ITC Ltd: Considering the daily timeframe, the stock has formed a reversal Morning Doji Star candlestick pattern, which suggests a possible trend reversal in the stock. Along with this bullish formation, the stock has also managed to close above its 20-day EMA level. The positive crossover on 14-period daily RSI and daily stochastic supports overall bullish price structure. Further, on the lower timeframe, i.e. 30 minutes, the stock is hovering around downward sloping trendline resistance. Any sustainable move above the trendline would invite a further bullish momentum in the stock, which is currently placed in the zone of Rs 198.50-Rs 199 level.

PVR Ltd: The stock has formed a reversal Dark Cloud Cover candlestick pattern as on June 08, 2020, and thereafter, it has witnessed the contracting consolidation phase. During this consolidation phase, the volume is mostly below 50-day averages volumes, which suggests that it is just a routing decline after a robust move (Rs 718.30-Rs 1,303). Considering the daily timeframe, the stock has given over a one-month consolidation breakout. This breakout was supported by above 50-day average volumes. The RSI on the daily chart has moved above its recent swing high and has marked a fresh 14-period high, which is bullish. Going ahead, we expect the bias to remain positive as long as the stock sustains above Wednesday’s low of Rs 1,021.10 level.

Titan Company Ltd: Considering the daily timeframe, the stock has given a downward sloping trendline breakout along with strong volumes. With this trendline breakout, the stock after a span of over four months has managed to successfully close above its crucial long-term moving average i.e. 200-day EMA. The stock has also managed to close above the upper Bollinger band and started the band walk, which is a very bullish sign. Interestingly, the daily RSI has given downward sloping trendline breakout, which is also bullish. The directional indicators continue in the ‘buy’ mode as +DI continues above –DI. Going ahead, we expect the stock to continue its positive momentum as long as it sustains above Wednesday’s low of Rs 1,015.60 level. On the higher side, the level of Rs 1,104.15, followed by Rs 1,134.70 would be seen as the next resistance zone for the stock.