Upside Breakout from Price Formations in These Big Stocks

Published February 01, 2019

The market rallied on Thursday, and Nifty 50 (NIFTY) closed at 10831 points after an increase of 1.68 per cent. The index has never gained more in one day since Dec 12, 2018, when it was up 1.79 per cent. For January as a whole the index showed only a slight change of -0.29 %.

855 shares showed a gain and 612 showed a loss. 75 shares were unchanged and closed at the same price as the previous day. There was no trading in 260 shares.

Value of the total volume of shares and primary capital certificates traded Thursday was approximately 438.4 billion.

Among the big liquid stocks there are two which have given upside breakout from price formations.

Reliance Industries Li (RELIANCE.NS) Close: 1227.15

Investors have paid higher prices over time to buy Reliance Industries Limited and the stock is in a rising trend channel in the medium term. Rising trends indicate that the company experiences positive development and that buy interest among investors is increasing.

It also gave a positive signal from an inverse head and shoulders formation at the break up through the resistance at 1174. Further rise to 1330 or more is signaled. The stock has support at rupee 1100 and resistance at rupee 1320.

Positive volume balance indicates that volume is high on days with rising prices and low on days with falling prices, which strengthens the stock. The stock is overall assessed as technically positive for the medium term.