In spite of yesterday's weak Nifty close, I had indicated that based on the 'stick sandwich' pattern, the likely hood of today's move was upward. And this was in spite of the bad inflation figures.
When technicals indicate weakness, a bad inflation can make the markets fall ; and when technicals are strong or oversold in present case, the same inflation figures lead to a rise in the market!
One stock (among the various which I identified) which are showing signs of some upward moves based on divergences on indicators like the RSI is NTPC
It seems to have made a good support level of Rs 148 levels and it has closed at Rs 154/- today (Friday). I expect that a break out of Rs 160 will be further positive and one can then target 178-185 levels. Keep in mind the support level of 148 in any case.
The RSI and MACD too are showing divergences, suggesting that the scrip has been relentless hammered and needs a correction!
Happy trading and have a good weekend !
CA Rajiv D Khatlawala
1 comment:
As you indicated about ntpc, in most of the large cap bank it is the same signal..........Good one
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