Daily chart clearly shows head and shoulder breakout and falling channel. watch for a day end closing above 0.7633 as that could yield 0.77-0.7720 tomorrow.
Nifty extends gains following inv. H&S breakout
Nifty is trading up; looking to extend its three day winning streak, which helped it breach inverse head and shoulder neckline.
But take note of the daily RSI, which is overbought now. A look at the hourly chart also shows a possible bearish RSI divergence.
Latest Brexit polls – Remain vote lead strong and intact
| Remain | Exit |
| 51 | 46 |
| 44 | 45 |
| 41 | 41 |
| 44 | 45 |
| 55 | 42 |
| 44 | 40 |
| 52 | 41 |
| 55 | 37 |
| 44 | 40 |
| 38 | 41 |
| 51 | 45 |
| 47 | 39 |
| 43 | 47 |
| 609 | 549 |
The poll of poll shows remain vote is in lead by 60.00. Thats a strong number and not to forget undecided category, which in brexit like referendum is more likely to shift towards remain vote rather than exit vote.
Nifty update – watch for break above inverse head and shoulder neckline
Prices likely to close above neckline level today. Seems like good times ahead for the bulls!
Colours of stocks – Asian Paints
Last quarter was good in terms of sales for Asian Paints. It maintained top position among its peers by earning a revenue of Rs. 3171 crores. Despite a dull year, the company managed an annual revenue growth of 9.5% and earnings growth of 23.8%. It got benefited by low prices of crude as crude being the major raw material. Company also cut its prices by 2%.
However Brent crude slumped 22% during the quarter, therefore raw material prices are expected to remain low and support margins, but they may not be sustainable in the year to come.
Asian Paints also entered in waterproofing market which was dominated by companies like _Pidilite_ (Dr. Fixit). The company is finding the growth in smaller towns.
Fundamentally speaking, the company is having great potential to grow as it has various product range to offer. Investors can remain optimistic on this stock. This year rains are expected to be above average; which will see great demand from rural area and Tier-III towns post monsoon..
Nifty Cypher set up
Check out this link of my account on tradingview.com where i have used Cypher pattern to track a possible trajectory of Nifty over next two years or so.
https://www.tradingview.com/chart/NIFTY/FX4OXWyF-Nifty-monthly-chart-outlookl/
Nifty rebounds from trend line support
Nifty daily
Nifty has found support at trend line drawn from March 15 low-April 10 low. Nevertheless, lower tops lower bottoms could be seen on intraday charts, thus signaling the rebound may not last much.
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