Technical stocks to watch out for on Thursday
Chambal Fertilisers & Chemicals Ltd: After registering a high of Rs 172.95, the stock has witnessed a correction. The correction is halted near the 50 per cent Fibonacci retracement level of its prior upward rally (Rs 93.80-Rs 172.95). On Wednesday, the stock gave a downward sloping trendline breakout, formed by connecting swing highs from August 2020. This breakout is confirmed by a relatively higher volume. Currently, the stock is trading above its short and long-term moving averages, i.e. 20-day EMA, 50-day EMA, 100-day EMA, and 200-day EMA level. Talking about the indicators, the daily RSI is currently quoting at 60.06 and it is in a rising trajectory. Hence, we would advise the traders to be with a bullish bias. On the downside, the zone of Rs 151-Rs 150 is likely to act as important support as it is the confluence of short-term 13-day and 20-day EMA level. On the upside, immediate resistance is seen in the zone of Rs 161-Rs 162.
Dabur India Ltd: Considering the daily timeframe, the stock has given a breakout of downward sloping trendline resistance, formed by connecting swing highs from August 2020. Further, the breakout is supported by the above 50-day average volume, indicating a strong buying interest by the market participants. The major trend of the stock is bullish as it is trading above its weekly pivot and above its long and short-term moving averages, i.e. 20-day, 50-day, 100-day, and 200-day EMAs and these moving averages are exactly in an ascending order, which suggests that the trend is strong. The leading indicator, 14-period daily RSI is currently quoting at 58.68 and it is trading above its 9-day average. In the daily timeframe, ADX is 15.22 and suggests that the trend is yet to be developed. The directional indicators are in the ‘buy’ mode as +DI continues above –DI. Moreover, the daily stochastic is also suggesting a bullish momentum as the fast stochastic is trading above its slow stochastic line. 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, the 20-day EMA level is likely to act as immediate support for the stock, which is currently placed at Rs 497.05 level.
Just Dial Ltd: On September 25, 2020, the stock has formed a reversal bullish engulfing candlestick pattern and thereafter, marked the high of Rs 389. Currently, the stock is trading above its weekly pivot and short-term moving averages, i.e. 20-day EMA and 50-day EMA. The leading indicator, daily RSI is currently quoting at 52.24 and it is trading above its 9-day average. On Wednesday, the directional indicators have seen a bullish crossover as +DI has crossed over -DI. Currently, the stock is on the verge of giving a breakout of a downward sloping trendline resistance on the daily timeframe. If it moves above the zone of Rs 390-Rs 392.50, then we may see a bullish momentum in the stock.