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.
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
Oriconent is looking north with a bullish divergence of the RSI following a prolonged sell-off.
Daily candle is looking like a bull hammer. I see this one going to 23 this week. As of now, it is trading at 20.20.
Sundaram Fasteners’ daily chart shows a bullish divergence of RSI.
The MACD has also crossed bullish. Also, signs of seller exhaustion with doji candle on Friday.
A stronger corrective bounce to 460 looks overdue. At press time, shares are trading at 442.
Daily chart
HDF life insurance is being offered with prices currently down nearly 4%. Daily chart shows bearish RSI divergence. A closer look also shows the RSI has charted a head-and-shoulders pattern.
More importantly, it has been a high-volume bearish reversal.
All-in-all, it looks like a sell on rise setup. I can see this falling to 460 in few days. As of now, its trading at 481.
Bought Yes Bank shares soon before press time. Expecting a solid corrective bounce to 108.50. A close higher would expose 140.
Rationale
Bullish inside reversal candle on weekly + RSI on weekly bouncing up from oversold territory.
High-volume bullish divergence of RSI on the daily chart.
Daily chart
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