Sunday, March 29, 2020

Dragon Fly Doji On IRCTC Weekly Chart!

Nowadays only selling side traders are earning money. Who is working on buy-side they are panicked and scared about their holdings. There are many stocks are oversold and good to buy but the market is not giving a signal of bottom out. Still, we have found one good stock which has given bottom out a signal on the chart i.e. 70-80%. Let's see the overview.

We are talking about IRCTC when IPO launched that time listing price was 330-335 and it is listed in the open market directly at 626 i.e. double of IPO price. The reason is this is the government company and railway is a major & cheapest way of transportation in India. Due to lockdown may be the stock price will come down however, it is a fundamentally strong company.

Daily Chart: As per the chart, stock trading near its weekly support and in the last 15 trading session it has shown 5 times lower circuit. The stock has confirmed Bullish Engulf on 26th March and the next day it has shown the upper circuit. If we see indicators then all are trading in the oversold zone.

“Is This Signal Of Trend Change?”

Weekly Chart: In last week, a stock price has made a low of 774.65 and closed near the opening price. If we see the chart pattern then it is confirmation of Dragon Fly Doji. After the nonstop fall of 4 weeks stock has given a neutral signal on the weekly chart.

Below are the positive things which I have noticed:

  • Stock is trading near strong support
  • Neutral sentiments near support
  • Company is virtually debt-free
  • Our country is taking good precautions on CORONVIRUS
  • The ratio is good of recovered patients

I am positive on IRCTC from current levels and the next small resistance is 1020. The small support is 775 i.e. weekly low.

----------------------------------------------------------------------------------------------- Disclaimer: The contents produced here are purely for educational purposes. 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.