Technical charts to watch out for on Tuesday
Indraprastha Gas: On Monday, the stock has given a 29-week consolidation breakout along with robust volume. Additionally, the stock has formed a sizeable bullish candle on the breakout day, which adds strength to the breakout. The leading indicator i.e. the 14-period daily RSI is currently quoting at 75.60 and it is in a rising mode, which is a bullish sign. The weekly RSI has surged above the 60 mark. The other momentum indicators and oscillators are also indicating bullish momentum. On the downside, the 8-day EMA is likely to act as short-term support, which is currently quoting at Rs 565.40 level.
Ramco Industries: The stock has formed a bearish engulfing candlestick pattern as of July 27, 2021, and thereafter, witnessed a correction. The correction is halted near the upward sloping trendline support formed by connecting swing lows from January 2021. The trendline support also coincides with the 20-week EMA level. Since the last 13 trading sessions, the stock has formed a strong base near the trendline support. On Monday, the stock gave base pattern breakout along with robust volume. The reversal from support is also supported by momentum indicators. The daily RSI has surged above the 60 mark, which is a bullish sign. Going forward, the stock has strong support in the zone of Rs 295-Rs 290. On the upside, the level of Rs 330 will act as immediate resistance for the stock.
New India Assurance Company: Considering the daily timeframe, the stock is on the verge of giving the breakout of a downward sloping trendline resistance on the daily chart. Currently, the stock is trading above its short and long-term moving averages. Interestingly, the weekly RSI has bounced exactly from the 40 mark, which indicates a range shift. Going forward, the zone of Rs 170-Rs 172 will be the crucial resistance for the stock as the downward sloping trendline resistance is placed in this zone.
