Technical stocks to watch out for on Monday

Atul Ltd: Considering the daily timeframe, the stock has given an ascending triangle pattern breakout along with robust volumes. Along with this triangle breakout, the stock has also managed to close above the upper Bollinger band and started the band walk, which is a very bullish sign. The stock is meeting Daryl Guppy’s multiple moving averages set-up rules as it is trading above both the short and long-term moving averages. Talking about the indicators, the 14-period RSI on the daily timeframe has marked a fresh 14-period high and is trading above its previous swing high. Further, the ADX is reasonably good at 25.87 levels. The +DI is much above the -DI and ADX show strength in the trend. Technically, all the factors are currently aligned in support of the bulls. Hence, we would advise the traders to be with a bullish bias. On the downside, an important support for the stock is placed at the zone of Rs 4,680-Rs 4,660 and on the upside; an immediate resistance is seen at Rs 5,050.

Oil India Ltd: On Friday, the stock has given a downward sloping trendline breakout on the daily timeframe, formed by connecting swing highs since June 2020. This breakout is supported by the relatively higher volumes. Additionally, the stock has formed an opening bullish Marubozu candlestick pattern on the breakout day, which indicates an extreme bullishness. The leading indicator, 14-period daily RSI, is currently quoting at 57.45 and it is in a rising trajectory. The per cent K is above the per cent D, which is indicating further strength. Considering all the above factors, we expect the bias to remain positive as long as the stock sustains above Friday’s low of Rs 96 level. On the higher side, the previous swing high of Rs 102, followed by Rs 107.40, would be seen as the next resistance zone for the stock.

Persistent Systems Ltd: The stock has given a downward sloping trendline breakout as on June 01, 2020, and thereafter, witnessed almost 45 per cent upward move. After registering a high of Rs 799.95 as of July 16, 2020, the stock has witnessed minor correction. The correction is halted near 23.6 per cent retracement level of its prior upward move (Rs 460-Rs 799.95) and coincides with the 20-day EMA level. Considering the daily timeframe, the stock has formed three inside up candlestick pattern, which suggests bullish momentum. Further, the reversal from the support is confirmed by the above 50-week average volumes. The 14-period RSI on the daily timeframe is in bullish territory. Furthermore, in the recent sideways to corrective mode, the RSI never breached its 60 mark, which indicates that the stock is in a super bullish range as per the RSI range shift rules. Going ahead, we expect the stock to continue its positive momentum as long as it sustains above Friday’s low of Rs 725.05 level.

RBL Bank Ltd: The stock, after registering a high of Rs 205.70 in the month of June 2020, entered into a corrective phase and made a low of Rs 160.50. At present, the stock is near the breakout level of the downward sloping trendline, which is formed by connecting swing highs from June 2020. On Friday, the volumes recorded were above the 50-day average, which is a sign of accumulation. The positive crossover on the daily RSI supports the overall price structure. Going ahead, the zone of Rs 186.40-Rs 187 is likely to act as an immediate hurdle for the stock and a follow-through move above this level would lead to an extension of the pull-back toward Rs 192, followed by Rs 197.

Sun Pharma Advanced Research Company Ltd: The stock has given a downward sloping trendline breakout as on May 28, 2020, and thereafter, witnessed almost 40 per cent upside. As on June 23, 2020, the stock has formed a reversal shooting star candlestick pattern and thereafter, witnessed a minor correction. During the corrective phase, the stock has formed an Adam & Adam double bottom pattern near the 20-day EMA level. On Friday, the stock has managed to close above the neckline of the double bottom pattern. During the last three trading sessions, the volumes recorded were above the 20-day average, which is a sign of accumulation. Going ahead, we expect the stock to continue its positive momentum as long as it sustains above Thursday’s low of Rs 167.50 level.