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

Much on the anticipated lines, the NIFTY staged a strong short-covering led technical pullback that helped the index close with a strong recovery of 410.45 points 2.53%. In the process, the index has formed a slightly higher top but significantly higher bottom on the charts. The current recovery is purely due to short-covering as the up move in NIFTY was seen with a reduction of Net futures OI in the March series.

Given the buoyant global trade setup, this up move may get extended on Monday as well which will cause the NIFTY to open near to the 200-DMA which stands at 16903. It would be crucial for NIFTY to maintain opening gains and the intraday trajectory that it forms after opening will be crucial to watch.

BANK OF BARODA 

BANKBARODA has been one of the most resilient PSU Banking stocks. It presently trades above all its key moving averages. After breaking above 107 following a double top on the daily chart, the stock had suffered a total throwback which took it below this point. Few technical signs show that some more upward revision in price is likely for this stock. The MACD is bearish but the rapidly narrowing slope of the Histogram may lead to a positive crossover in the coming days. RSI is neutral and does not show any divergence against the price. The OBV is at its high point; the RS line against the broader market is in a firm uptrend and above the 50-DMA. The stock may see 111 – 114 levels going ahead; any close below 102 will negate this view.

HINDALCO

HINDALCO has encountered a classical double top resistance at 552 and has resisted to this point. Over the past couple of days, the stock has been consolidating near this point; after having bounced off the 50-DMA, it is set to move higher toward its high price again. The OBV – On Balance Volume revolves around its high point. The RS line against the broader NIFTY 500 index has hit a new high; it remains in a firm uptrend and above its 50-DMA. A fresh PSAR buy signal has also emerged on the chart. The volumes remain comfortably above their 25-day average. If the move resolves on the expected lines, the stock may test 355-370 levels over the coming days. Any close below 518 will negate this view.

Also read: Swing Trading Stocks for the week : February 28 , 2022