The current pullback rally could continue towards the level of 11,153-11,204 and sustaining above this level could tell us whether the bulls have the potential to take it forward or not. Stocks in news: Dr Reddy’s Laboratories, Indoco Remedies, Escorts, Surya Roshni, Mukand, Reliance Industries.

The bulls are likely to continue their action from where they left on Friday as SGX Nifty is indicating a blistering start for the markets. SGX Nifty is up by 68 points and trading at 11,108 levels.

This resulted in the formation of the Adam & Adam double bottom pattern. Going ahead, it’s important for the stock to sustain and close above the neckline of the double bottom pattern, which is placed in the region of Rs 34.50-Rs 34.80.

The bullish engulfing candlestick pattern is considered to be a bullish reversal pattern and usually occurs at the bottom of a downtrend. With this bullish formation, the stock has also managed to close above its short-term moving averages, i.e. 8-day EMA and 13-day EMA.

The stock of Hindalco Industries Limited has formed a Tri-Star bottom reversal like pattern. The formation of the pattern is not exactly according to the textbook rules as the middle day candle has a minor body. It should be noted that the textbook perfect Tri-Star pattern is very rare.