Buy signal on high volume

Published November 28, 2018

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The market showed a small gain Tuesday, and Nifty 50 (NIFTY) ended the day at 10686 points, which is an increase of 0.54 per cent. Advance-decline ratio was at 1:1 which suggests that bulls and bears were mostly neutral and indecisive when it comes to index components.

But same is the case for NSE, where 704 shares were up and 763 were down, while 94 remained unchanged, and there was no trading in 243 shares.

The value of the total volume of shares and primary capital certificates traded Tuesday was approximately 302.4 billion.

Adani Transmission Lim (ADANITRANS.NS) Close: 250.95

Adani Transmissio Limited has broken the long standing resistance of 232 rupees after testing the same level few times before. This has initiated a new buy signal in the medium term chart. The stock price has closed at an all time high, hence there is no resistance in the price chart. In case of negative reactions, there will now be support at rupee 232.

The volume balance is positive, which suggests that the price rises on high volume and corrects on low volume. Momentum indicator RSI is above 70. This shows that the stock has strong positive momentum in the short term. The stock is overall assessed as technically positive for the medium term.

Be extra careful of the high volatility in the stock, which is at 28 per cent on monthly basis.

Investtech's outlook (one to six months): Positive

The analyses are based on closing price as per November 27, 2018. Maintaining proper stop loss is always recommended.