On Tuesday, Nifty saw yet another rangebound session with the formation of a bearish candlestick pattern with minor upper and lower shadows, which resembles the Inside Bar kind of pattern on the daily chart, as the index stayed within the previous day’s range throughout the day.
Here are the top two stocks to watch out for:
PVR Inox Ltd
The pvr inox ltd stock has registered a head and shoulders (H&S)-like breakout. It’s not a picture-perfect H&S breakout, but it meets the majority of the criteria. The 20 DMA is in a downtrend, and the stock closed near the 50 DMA. It is also near the 38.2% retracement level of the prior uptrend. The RSI is about to shift its range into the bearish zone, and the MACD line is near the zero line, with the histogram showing strong bearish momentum. The KST and TSI have been in a bearish setup. The stock has declined below the super trend, and the Elder’s impulse system has formed a strong bearish bar. In short, the stock has broken out of the H&S-like pattern with higher volume than the previous day. A move below Rs. 1685 is negative for the stock, and the next support is seen at the level of Rs. 1618.
Bata India Ltd
The bata india stock has closed below the parallel supports and formed an inverted cup-like pattern. It is trading below all key moving averages, with both the 20 DMA and 50 DMA in a downtrend. The MACD is below the zero line, and the histogram shows bearish momentum. The RSI has already shifted its range into the bearish zone. The Elder’s impulse system has formed a series of bearish bars, and it closed at the Anchored VWAP support. The KST and TSI indicators have been in a strong bearish setup. In short, the stock has registered a bearish breakout. A move below Rs. 1612 is negative for the stock, and the next support is seen around the level of Rs. 1577.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.