We have found two
large-cap stocks which are looking good on the chart. Indian markets have taken
a turn on Finance Minister’s announcements. Now everyone finding investment
opportunities in good companies.
Technical Overview of RELIANCE: From the last few months Reliance Industries was in downtrend. In the period of 18th June to 24th July 2019, the stock was trading in the consolidation zone. After that stock has broken down the range and started afresh drop. In the next two-three days and the stock has started to trade below their 200 DMA. And 200 DMA is playing an important role as support and resistance. Reliance Industries has given a sharp fall from 1232 to 1096 and took support as per the weekly chart. After that Aramco and BP have announced, they will help to slash debt of Reliance Industries and this news helped to stock to rise by 10% in a single day. After big gains stock again took resistance from previous consolidation zone and came down to fill the gap. Today stock has given Break Out to Trend Line and at the same time took resistance of the same zone.
As per our studies, we can buy a stock at a current price i.e. 1278 or on dips till 1255. Keep stop-loss of 1230 is advisable. Once stock crosses and closes above 1300 then it will show 1330-1370-1400.
Technical Overview of INFOSYS: As
we can see in the below chart, on 15th July 2019 stock has given Break
Out to range-bound zone and started a
new journey from those levels. On 23rd September stock again fell down and
closed near the same support. Yesterday with the help of dollar rally, the
stock has gained by 3.50% in a day and closed at day high. If we see the last
two candles then Bullish Harami pattern
is formed on the daily chart and that is near support. Volumes are also good.
We can buy 50% quantity at current levels and the remaining 50% on dips i.e. at 780. Book loss if a stock will start to trading below 760 and hold for a target of 810-830.
Technical Overview of RELIANCE: From the last few months Reliance Industries was in downtrend. In the period of 18th June to 24th July 2019, the stock was trading in the consolidation zone. After that stock has broken down the range and started afresh drop. In the next two-three days and the stock has started to trade below their 200 DMA. And 200 DMA is playing an important role as support and resistance. Reliance Industries has given a sharp fall from 1232 to 1096 and took support as per the weekly chart. After that Aramco and BP have announced, they will help to slash debt of Reliance Industries and this news helped to stock to rise by 10% in a single day. After big gains stock again took resistance from previous consolidation zone and came down to fill the gap. Today stock has given Break Out to Trend Line and at the same time took resistance of the same zone.
As per our studies, we can buy a stock at a current price i.e. 1278 or on dips till 1255. Keep stop-loss of 1230 is advisable. Once stock crosses and closes above 1300 then it will show 1330-1370-1400.
We can buy 50% quantity at current levels and the remaining 50% on dips i.e. at 780. Book loss if a stock will start to trading below 760 and hold for a target of 810-830.
Disclaimer:
The contents produced here are purely for educational purpose. They
should not be construed as buy/sell recommendations. I am not a SEBI
registered Analyst or Investment Advisor. Readers are advised to consult
their Investment advisor before taking any decisions based on the above
write-up.
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