Another banking stock is looking good… Axis bank could rise to 680 as the daily chart is reporting a bullish divergence of the RSI
5- and 10-day EMAs have bottomed out and the stock has formed a nice bull hammer today with lower wicks marking a quick recovery from sub-5, 10-day EMA levels.
HDFC has bounced up from levels near 2200 for the third straight day, validating Friday’s bullish inside bar candle, daily MACD’s bullish turn, and the RSI’s breach of the falling trendline last week.
The stock price can rise to 2239 by day’s end and will likely extend gains to 2270-2280 (falling trendline) hurdle next week.
I would want to be a seller if the price finds acceptance under 2200.
Bank nifty has picked up a bid as expected. I initiated a buy call at 27,800 earlier today, The index hit a high of 27,992 and is trading at 27,956.
Hold longs, risk-averse traders can move stop loss to cost..
Buy at the current price of 27,800 for target 28,600 with stops below 27,683
Rationale
Bank nifty created a bullish inside bar pattern on Wednesday.
The MACD has crossed above zero, confirming a bull reversal.
The RSI breached the descending trendline earlier this month.
Heg has picked up a strong bid in the last sixty minutes or so and is now flirting with the descending trendline, as can be seen on the hourly chart.
On the daily chart, Heg seems to have carved out a bottom… watch out for this one as it could fly high in the next few days.
Nifty will likely on a flat note if the index breaks out of the descending triangle seen on the 5-minute chart.
Moreover, the breakout would imply a continuation of the rally from lows near 10,880.
5-min chart
The stock price is up 1.9% today, marking a bull follow-through to yesterday’s long-tailed doji candle.
RSI has crossed above the average and the MACD is about to rise above zero.
Looks like the tide is turning in favor of the bulls for the short-term.
Signs of buyer exhaustion near 800 not being followed by a pullback to 780. The drop confirms the bearish divergence (lower highs) on the 14-day RSI.
So, a bigger drop to 760-750 looks likely in the short run. Good to sell rallies with stops above 800
Bought Yes Bank @87.90 for target of 106.00 with stops below 87.00.
The logic is the same as discussed on Monday.
Previous week’s candle was bullish inside reversal. Oversold as per daily RSI.
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