Technical stocks to watch out for Wednesday
Adani Ports and Special Economic Zone Ltd: Considering the daily timeframe, the stock has given downward sloping trendline breakout on daily timeframe. Further, the breakout is supported by robust volume of more than double of 50 days’ average volume, indicating strong buying interest by market participants. The major trend of the stock is positive as it is trading above its weekly pivot and short-long term moving averages and these moving averages are exactly in an ascending order, which suggests that the trend is strong. Interestingly, the leading indicator, RSI has surged above 60 mark for the first time since August 2020. Moreover, the daily MACD stays bullish as it is trading above its zero line and signal line. Hence, we would advise the traders to have a bullish bias. On the downside, the 20-day EMA level is likely to act as immediate support for stock, which is currently placed at Rs 363.50 level.
Kolte-Patil Developers Ltd: Considering the daily timeframe, the stock is trading in symmetrical triangle pattern since last 57 trading sessions. Due to narrow range the Bollinger band has been contracted on weekly timeframe, which is early signal of a bigger move. Among the momentum indicators, the RSI has already given downward sloping trendline breakout, which is bullish sign. Further, the MACD line just crossed the signal line, and the histogram became green. Currently, the stock is on the verge of giving a breakout of symmetrical triangle on daily timeframe. If it moves above the zone of Rs 188-Rs 190 then we may see the bullish momentum in the stock.
Heidelberg cement India Ltd: On Tuesday, the stock has given symmetrical triangle pattern breakout on daily timeframe. This breakout is confirmed by robust volume. Additionally, the stock has formed sizeable bullish candle on breakout day, which is positive sign. The stock's Relative Strength Index (RSI) has reached its highest value in the last 14-days, which is bullish. Also, it has managed to close above its prior swing high. Hence, we expect the bias to remain positive as long as stock sustains above the Tuesday’s low of Rs 192.50 level. On the higher side, the level of Rs 217- Rs 218 would be seen as the next resistance zone for the stock.
Sundaram Finance Ltd: After registering the high of Rs 1,617.40, the stock has witnessed consolidation along with low volume. On Tuesday, the stock has given consolidation breakout along with robust volume. The 14-period RSI on the daily timeframe is in bullish territory. Furthermore, in the recent sideways phase the RSI never breached its 60 mark, which indicates that the stock is in a super bullish range as per RSI range shift rules. Technically, all the factors are currently aligned in support of the bulls. Hence, we would advise the traders to have a bullish bias. On the downside, important support for the stock is placed at the zone of Rs 1,535- Rs 1,525 and on the upside; an immediate resistance is seen at Rs 1,680 level.