Published February 26, 2019
Today we have chosen Nifty 500 listed stocks that have given recent breakouts. The momentum indicator RSI in the stocks is rising and that is always a good sign. In our previous article we wrote about the RSI indicator and how stocks have performed after breaking above and below the 70 and 30 levels. In our next article we will write about trend, the performance of stocks in a rising and a falling trend. For now let us focus on the analysis of two good trading opportunities.
The broader market showed a small gain Monday, and Nifty 50 (NIFTY) ended the day at 10880 points, which is an increase of 0.82 per cent. The index has now risen for the fourth day in a row. 919 shares were up and 543 were down, while 76 remained unchanged, and there was no trading in 187 shares.
3M India Limited shows strong development within a rising trend channel in the medium to long term. In the last 5 years the stock has risen by 5.6 times.
In the last couple of months the stock has been in a sideways trend until the buyers decided to establish support around 19300 and take the price higher. The stock has given a buy signal from a double bottom formation and a target of 27091 or higher is given. There is resistance around 26000 rupees and support at 21000 rupees.
The stock has strong positive momentum and positive volume balance in the medium term. The stock is overall assessed as technically positive for the medium term.
Recommendation one to six months: Positive
PI Industries Limited has been popping up on our Top 50 list for a while and it was time to write an analysis of it. The stock has broken out from the ceiling of the rising trend channel and eventually the resistance at 910 rupees in the medium term. This indicates that the buyers have been aggressive in taking the prices higher. The volume balance indicator is also very positive. The momentum indicator RSI is rising and together this indicates support for the rising stock price.
On the downside there is support at 910 and 852 rupees in the medium and short term respectively. There could be resistance around 1016 levels which is its earlier top made in January 2018.
Recommendation one to six months: Positive
The analyses are based on closing price as per February 25, 2019. Maintaining proper stop loss is always recommended.
Investtech ei takaa analyysien tarkkuutta tai kattavuutta. Kaikkien analyysien tuottamien neuvojen ja signaalien käyttäminen on täysin käyttäjän vastuulla. Investtech ei vastaa mistään tappioista, jotka saattavat syntyä Investtechin analyysien käytön seurauksena. Mahdollisten eturistiriitojen yksityiskohdat mainitaan aina sijoitusneuvon yhteydessä. Lisätietoja Investtechin analyyseistä löytyy täältä disclaimer.
Investtech ei takaa analyysien tarkkuutta tai kattavuutta. Kaikkien analyysien tuottamien neuvojen ja signaalien käyttäminen on täysin käyttäjän vastuulla. Investtech ei vastaa mistään tappioista, jotka saattavat syntyä Investtechin analyysien käytön seurauksena. Mahdollisten eturistiriitojen yksityiskohdat mainitaan aina sijoitusneuvon yhteydessä. Lisätietoja Investtechin analyyseistä löytyy täältä disclaimer.