Hot Stocks: A breakout on weekly charts in Lux Industries could take it towards Rs 1700
Episode 2226, Feb 13, 2020, 12:30 AM
Last week on the weekly time frame, the Nifty50 formed a bullish Piercing Line while the Bank Nifty formed a Bullish Engulfing candlestick pattern.
Both of these candlestick patterns have bullish reversal implications and should not be ruled out even after the recent spike seen in the indices.
Benchmark index reversed after visiting its extended breakdown line in the absence of buying support in the market.
A strong positive surge for Nifty 50 on 12th February 2020 has witnessed a smaller degree horizontal trend line breakout on the daily interval.
Ahead of weekly expiry on Thursday, short recovery was witnessed in 12,100, 12,150 and 12,200 calls. And, new short built up was seen in 12,100, 12,150, 12,200, and 12,250 weekly puts.
The data suggests that the base has created around 12,150 levels, so chances of weekly expiry above 12,150 are higher.
Since the past few trading days, the Nifty is stiffly giving close above 21 & 50-Day exponential moving averages (EMA), which is positive for Indian benchmark indices.
Wednesday’s breakout suggests that Nifty is likely to resume the northward journey as its momentum indicator are positively poised above their respective averages.