Technical stocks to watch out for on Tuesday
Asian Paints Ltd: On Monday, the stock has given a downward sloping trendline breakout on the daily timeframe, formed by connecting swing highs since March 2020. Additionally, the stock has formed an opening bullish Marubozu candlestick pattern on the breakout day, which indicates an extreme bullishness. Further, since the last two trading sessions, the volume is above the 50-day average, which is a sign of accumulation. Among the momentum indicators, the daily RSI is currently quoting at 61.38 and it is trading above its nine-day average. Considering all the above factors, we expect the bias to remain positive as long as the stock sustains above Monday’s low of Rs 1,717.20 level. On the higher side, the level of Rs 1,814, followed by Rs 1,864, would be seen as the next resistance zone for the stock.
Equitas Holdings Ltd: Considering the daily timeframe, the stock is trading in a rising channel since May 2020. On Monday, the stock has given an upward sloping trendline breakdown, which suggests a correction before another northward journey. This breakdown is confirmed by a relatively higher volume. The leading indicator, 14-period daily RSI, is currently quoting at 45.25. The RSI is trading below its nine-day average and it is in a falling mode. The daily MACD stays bearish as it is trading below its zero line. In case the stock sustains below the level of Rs 51.65, it would invite further selling and may test its swing low of Rs 48.80 registered on June 30, 2020. On the other hand, it is advisable to wait until the stock moves above the level of Rs 57.50 to create any short-term long position.
Hexaware Technologies Ltd: The stock has marked the high of Rs 373.80 and thereafter, witnessed a minor correction. The correction is halted near the short-term 13-day EMA level. Considering the daily timeframe, the stock has given a five-day range breakout along with a strong volume. Further, the stock has formed an opening bullish Marubozu candle on the breakout day. Currently, the stock is trading above its short and long-term moving averages. The leading indicator, the daily RSI, is in a super bullish zone. Moreover, the ADX is also very strong as it is above the level of 50. Going ahead, we expect the bias to remain positive as long as the stock sustains above Monday’s low of Rs 361.80 level.
Kajaria Ceramics Ltd: Considering the daily timeframe, the stock has given a horizontal trendline breakout formed by connecting swing highs since March 2020. Since the last two trading sessions, the volume is above the 50-day average, which is a sign of accumulation. Talking about the indicators, the RSI on the daily chart has moved above its recent swing high and marked a fresh 14-period high, which is bullish. The MACD line just crossed the signal line, and the histogram became green. In the daily timeframe, ADX is 19.75 and suggests that the trend is yet to be developed. Directional indicators continue in the ‘buy’ mode as +DI continues above –DI. 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 400-Rs 398 and on the upside; an immediate resistance is seen at Rs 452.
MindTree Ltd: On Monday, the stock has given a downward sloping trendline breakout formed by connecting swing highs since September 2018. This breakout is confirmed by the above 50-day average volume. The leading indicator, RSI, is in a rising trajectory on both the weekly and the daily timeframe. The MACD histogram on the weekly timeframe is suggesting a pickup in the upside momentum. Going ahead, in case the stocks sustain above its previous swing high of Rs 1,062.80, then it may extend its northward journey.
Tata Consultancy Services Ltd: Considering the daily timeframe, the stock has bounced back from the edge of the upward sloping trendline support, which is formed by connecting the swing lows from May 2020. The reversal from the support is further justified with strong volumes. Additionally, the stock has formed a reversal morning Doji star candlestick pattern, suggesting that the bulls are taking control near the long-term support. With this, the stock has also managed to close above its short-term moving average, i.e. 13-day EMA and 20-day EMA. The leading indicator, 14-period daily RSI, is currently quoting at 56.40 and it is in a rising trajectory. The daily stochastic oscillator is also suggesting some bullish strength as per cent K is above the per cent D. Going ahead, we expect the bias to remain positive as long as the stock sustains above Monday’s low of Rs 2,163 level. On the higher side, the level of Rs 2,240, followed by Rs 2,333, would be seen as the next resistance zone for the stock.