Hot Stocks | Oil India, PVR look weak on technical charts; Muthoot Finance looks ready to rise

Episode 2439,   Apr 23, 2020, 12:30 AM

The bearish candlestick setup of the last two days was partially disturbed by the strong up-move in Nifty on April 22.

During the last eight trading sessions, the benchmark index is squeezed in a range of 8,900 to 9,350.

Nifty is currently trading in a bullish zigzag formation which is volatile in nature.

On April 20, Nifty's up-move was capped at around 9,390 which is 38.20 percent Fibonacci retracement from an all-time high of 12,430 to a recent intermediate low of 7,511.

Nifty's weekly chart seems to be improving after a straight vertical fall and momentum oscillator RSI (14) is currently just above 30 levels and the majority of stocks are showing significant oversold rally, so one cannot negate a sharp rally in benchmark index in coming days.

Bank Nifty, on the daily chart, seems to have completed its intermediate third wave at 16,116 and currently, we are on the fourth wave which is likely in a Zigzag formation.

From the bottom of 16,116, the banking index witnessed a sharp rise till 21,462 and again slipped for almost 4,000 points.