Index in bull horn mode, but need to be cautious; 5 stocks to buy or sell
Nifty50 weekly chart. Source: Finlearn Academy Index has risen little above 16% in less than 4 months which is very strong upside movement. In week gone by, Index has breached tight consolidation patch on higher side with gain of 1.34%.
It is bullish breakout. Looking at other side of the coin, from the bottom of 16800 to 19600, Index has risen in patch of 5% with 0.5% deviation. Recent upside movement has also reached around 5%.
However there is no reversal sign yet but one need to be caution at current levels. In previous move, Index has gone through pricewise to time wise correction for 5 days before resumption of fresh up move. In short term, Index will remain in positive zone above 19300 level.
From strategic index perspective, Microcap and small cap stocks did well. Index derived a good strength from IT, metal, realty and pharma stocks while round of profit booking observed in financial stocks specifically PSU banks, CPSE and consumer durable stocks. CONCOR weekly chart.
Source: Finlearn Academy Stock has risen from the lower band of 100 week consolidation and breached immediate high. In such consolidation patch, stock travels to upper band which is placed around 750 level. Stock has breached its previous peak (in circle) which is bullish continuation sign.
Bullish view will be negated below 665 level. Granules daily chart. Source: Finlearn Academy Pharma sector is in positive momentum and every dips offers good opportunity to buy.
Stock has formed large consolidation followed by breakout. It can be considered as double bottom pattern breakout which is bullish reversal sign, it indicates dominance of buyers over sellers. Stock is rising in upward channel.
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