Technical stocks to watch out for on Tuesday

Ajanta Pharma: Considering the daily timeframe, the stock has given a symmetrical triangle pattern breakout. This breakout is confirmed by the above 50-day average volumes. Additionally, the stock has formed a sizeable bullish candle on the breakout day, which adds strength to the breakout. Interestingly, the daily RSI has also given a horizontal trendline breakout, which is a bullish sign. The MACD is above the zero line and the signal line. The MACD histogram suggests bullish momentum. And most importantly, the MACD line crossed the prior swing highs. 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 1,569-Rs 1,564 level as it is the confluence of short-term 13-day and 20-day EMA level.

Natco Pharma: After registering a high of Rs 996, the stock has witnessed a correction. The correction was halted near the 50 per cent retracement level of its prior upward move (Rs 731-Rs 996), which coincides with the 50-day EMA level. Currently, the stock has given a 38-days consolidation breakout. Further, the breakout is supported by a robust volume of more than double of 50-days’ average volume, indicating strong buying interest by the market participants. The stock's relative strength index (RSI) has reached its highest value in the last 14-days, which is bullish. Also, it has managed to close above the 60 mark after a span of almost 37 trading sessions. The daily MACD stays bullish as it is trading above its zero line and signal line. Hence, we expect the bias to remain positive as long as the stock sustains above Monday’s low of Rs 920 level.

Rain Industries: The stock has given a cup & handle pattern breakout on the weekly timeframe. This breakout is supported by robust volumes. The length of the cup with the handle pattern was of 47 weeks while its depth was over 65 per cent. Since the last 4 weeks, the volumes recorded were above the 50-week average, which is a sign of accumulation. The leading indicator i.e. the daily RSI is currently quoting at 80.51 and it is in a super bullish zone. The ADX is also very strong as it is above the level of 50. Further, the other volume-based indicators like OBV and Money Flow Index (MFI) are also very strong. 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 121-Rs 119 as it is the confluence of upward sloping trendline support and short-term 13-day EMA level. On the upside, immediate resistance is seen in the zone of Rs 146.30-Rs 148.

Syngene International: On Monday, the stock has given a downward sloping trendline breakout, formed by connecting swing highs since September 2020. This breakout is confirmed by robust volumes. The major trend of the stock is bullish as it is trading above its weekly pivot and above its short and long-term moving averages, i.e. 20-day, 50-day, 100-day, and 200-day EMAs, and these moving averages are exactly in an ascending order, which suggests that the trend is strong. The leading indicator i.e. the RSI is in a rising trajectory on both the weekly as well as the daily timeframe. The daily stochastic has also given a positive crossover, which is a bullish sign. 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 572-Rs 569 level.