Chart Busters: Top trading set-ups to watch for Friday

The Nifty is 6.34% below the 20DMA, and earlier on March 08, it was 6.49% below its short term moving. Historically, the Nifty does not move more than 6 -6.5% below the 20 DMA, except in March 2020. Generally, whenever the price moves far away from the average, it will go back to the moving average level or revert to the mean. The Nifty, which now declined much below the Bollinger lower band, shows the oversold condition in the market. The RSI also declined below the 30 zone, and entered the oversold zone.

Nifty has declined near to the previous swing low, and the market is under complete bear control. In the last trading session, after opening a gap down, it failed to move above the prior bar high on a lower time frame. It added another distribution day. As the market reached an oversold condition, the downside potential seems limited. A short-covering rally is likely on the cards.

SRTRANSFIN: The stock closed below the prior swing low and below the previous bar low. It is trading below all key moving averages. For the last two days, the volume were higher than average. The RSI closed below the prior low and, below the 40 zone, entered the bearish zone. The MACD declined below the zero line, and the histogram shows an increased bearish momentum. The elder impulse system has formed a big bearish bar, while the TSI and KST indicator has given sell signals. The stock is also below the TEMA and Anchored VWAPs. In short, the stock has broken the prior swing low support and is below the key levels. A move below Rs 1062 is negative, and it can test Rs.1000. Maintain a stop loss at Rs 1080.

AMBUJACEM: The stock has formed a bullish engulfing and closed above the 20DMA. The Narrowed Bollinger bands suggest an impulsive move on the upside. The recent fall is a counter-trend consolidation and looks like a bullish flag pattern. The RSI is above 60 and in the bullish zone and the histogram shows a decline in bearish momentum. The volume is higher than the previous day and the +DMI is above the -DMI and ADX. The Elder impulse system has formed a bullish bar. It is also above the TEMA. In short, the stock registered a bullish breakout in a strong bearish market. A move above Rs 375 is positive, and it can test the previous high of Rs 391. Maintain a stop loss at Rs 365. Above Rs 391, continue with a trailing stop loss.