Technical stocks to watch out for on Tuesday

Asahi India Glass Ltd: After registering a high of Rs 242.20, the stock has witnessed a minor correction. The correction is halted near the 50 per cent Fibonacci retracement level of its prior upward move (Rs 160-Rs 242.20) and coincides with the 34-day EMA level. On Friday, the stock had formed a Doji candle, followed by a sizeable bullish candle, which suggests a possible trend reversal over the short-term. Further, the stock has given a downward sloping trendline breakout on the lower timeframe, i.e. 60-minute. During Monday’s trading session, the stock witnessed the above 50-day average volume, which is a sign of accumulation. The positive crossover on the 14-period daily RSI supports the overall bullish price structure. Hence, we expect the bias to remain positive as long as the stock sustains above its 20-day EMA level, which is currently quoting at Rs 201.90 level. On the higher side, the recent swing high of Rs 242 level, followed by Rs 255, would be seen as the next resistance zone for the stock.

MSTC Ltd: Considering the daily timeframe, the stock is trading in contracting consolidation since the last 35 trading sessions. Due to the narrow range, Bollinger Bands have contracted, which indicates an early signal of a bigger move. Also, on the daily timeframe, the stock is on the verge of giving a breakout of the downward sloping trendline. If it moves above the zone of Rs 162-Rs 163 then, we may see a bullish momentum in the stock.

Sequent Scientific Ltd: On Monday, the stock has a given downward sloping trendline breakout formed by connecting swing highs since August 2020. Further, this breakout is supported by the robust volume of nearly double of 50-day average volume, indicating a strong buying interest by the market participants. All the moving averages based trade set-ups are showing a bullish strength in the stock. Daryl Guppy’s multiple moving averages is suggesting a bullish strength in the stock. The stock is trading above all the 12 short and long-term moving averages. All the averages are trending up and are in a sequence. The leading indicator, 14-period daily RSI, is currently quoting at 64.54 and it is in a rising trajectory. Moreover, Martin Pring’s long-term KST set up has also given a buy signal. Technically, all the factors are currently aligned in support of the bulls. Hence, we would advise the traders to be with a bullish bias. On the downside, an important support for the stock is placed at the zone of Rs 131-Rs 130.