Chart Busters: Top trading set-ups to watch for June 9

The Nifty closed below the gap area support and near to the previous day's low. It also closed below the 38.2% retracement level of the current upswing.

On Wednesday, it almost tested the 20DMA and formed an engulfing bar. The momentum is completely on the downside, and the MACD line failed to close above the zero line for bullish confirmation. With yesterday's decline, the 200DMA also entered into a downtrend. The 50DMA is already in the downtrend, and it is distancing further from the 200DMA. As stated earlier, the counter-trends end with less than 50% retracements.

The current swing failed to surpass even 38.2% retracement and the 50DMA. The RSI is declining and moved below its 9 and 13 periods average. Currently, the last hope for the market is 20DMA support, which is at 16261. A close below this level is a big negative for the market. As the weekly expiry is, the volatility will increase further. Stay cautious and avoid aggressive positions.

SRF

The stock closed at crucial support of an upward channel. In a counter-trend rally, the stock failed to sustain above the 50% retracement level of the prior trend. The stock is decisively closed below the 20DMA. The 50DMA and the moving average ribbon are in the downtrend and the MACD is about to give a sell signal below the zero line. The -DMI is above the +DMI and ADX, while the volume recorded was higher than the average. The Elder Impulse System has formed a strong bearish bar. The True Strength Indicator has already given a fresh sell signal. It also declined below the Anchored VWAP support and the TEMA. In short, the stock is a very crucial support. A move below Rs 2250 is negative, and it can test Rs 2180. Maintain a stop loss at Rs 2276.

BHARTIARTL

It declined below the previous swing low, with a higher volume. The 20DMA acted as a strong resistance. The MACD is about to give a sell signal below the zero line. The -DMI is above the +DMI, and ADX indicates weakness, while the RSI is in a strong bearish zone of below 40. The Elder impulse system has formed four consecutive bearish bars, and the TSI indicator has given a fresh sell signal. It is also below the TEMA. In short, the stock is at key swing support. A move below Rs 664 is negative, and it can test Rs 640. Maintain a stop loss at Rs 676.