Technical stocks to watch out for on Wednesday

Bajaj Electricals Ltd: Considering the daily timeframe, the stock has given a downward sloping trendline breakout formed by connecting swing highs since June 2020. This breakout is confirmed by the above 50-day average volume. Additionally, the stock formed a sizeable bullish candle on the breakout day, which adds strength to the breakout. The leading indicator, 14-period daily RSI, is currently quoting at 65.60 and it is in a rising trajectory. The MACD stays bullish as it is trading above its zero line and signal line. The histogram is suggesting a pickup in the upside momentum. 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, important support for the stock is placed at the zone of Rs 417-415 and on the upside; an immediate resistance is seen at Rs 440, followed by Rs 466.

Finolex Cables Ltd: On Tuesday, the stock has formed a reversal bullish engulfing candlestick pattern on the daily timeframe, which indicates a possible trend reversal. The bullish engulfing is a bearish reversal candlestick pattern, which usually occurs at the bottom of a downtrend. Along with this bullish formation, the stock has managed to close above its eight-day EMA level. The leading indicator, 14-period daily RSI, is bounced exactly from 40-level and is currently trading above its nine-day average. The positive crossover on the daily stochastic also supports the overall bullish price structure. Going ahead, if the stock sustains above Tuesday’s session high of Rs 278.85 and trades convincingly above this level, then there is a high probability that Tuesday’s low point of Rs 262.25 would become a temporary bottom for the stock. 

Hero MotoCorp Ltd: Considering the daily timeframe, the stock has been trading in a rising channel since June 2020. On Monday, the stock has formed a reversal hammer candlestick pattern near the lower trendline of the rising channel. On Tuesday, it has given a confirmation of the trend reversal as it had formed a bullish candle. Further, a reversal from the support is also confirmed by the strong volumes. The daily RSI is in a super bullish zone. Going ahead, we expect the stock to continue its positive momentum as long as it sustains above Tuesday’s low of Rs 2,745 level.

JK Lakshmi Cement Ltd: On Tuesday, the stock has given a 15-day consolidation breakout on the daily timeframe, and this breakout is confirmed by the above 50-day average volumes. The 14-period RSI on the daily timeframe is in bullish territory. Furthermore, in the recent consolidation phase, the RSI never breached its 60 mark, which indicates that the stock is in a super bullish range as per the RSI range shift rules. Considering all the above factors, we expect the bias to remain positive as long as the stock sustains above Tuesday’s low of Rs 282.60 level. On the higher side, the level of Rs 300, followed by Rs 308, would be seen as the next resistance zone for the stock.

Maruti Suzuki India Ltd: Considering the daily timeframe, the stock has given a downward sloping trendline breakout formed by connecting swing highs since July 07, 2020. With this trendline breakout, the ADX, which shows the strength of the trend, turned upside and moved above the -DI. Further, the stock has also managed to close above the upper Bollinger band and started the band walk, which is a very bullish sign. The daily RSI is currently quoting at 63.74 and it is in a rising trajectory. The MACD line just crossed the signal line, and the histogram became green. Hence, we expect the stock to continue its positive momentum as long as it sustains above Tuesday’s low of Rs 6,031.15 level.