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

The Nifty closed below the previous day's low and gave a confirmation to southern Doji's bearish implications. It opened with a gap down, but, the opening low was protected and the index bounced over 150 points from the day's low. At the same time, the index protected the 16200 support on a closing basis, while the 78.6% level (16194) was tested. In any case, if the Nifty opens with a gap up on Tuesday and closes above the opening level, it would be a first rally attempt effort. On a lower time frame, the hourly MACD line moved above the signal line and gave a first positive signal. From now the downside risks are limited. During the rally attempt period, the 16600 zone will act as crucial support. A close above 16608 in the next two days will confirm another upswing.

POWERGRID: The stock broke the 19-day cup pattern with a massive volume. Currently, it is trading at a new high in bear market conditions and above all key moving averages. The MACD has given a fresh buy signal, and the RSI is in a strong bullish zone, while the KST and TSI indicators have given fresh buy signals. Mansfield's relative strength indicator is strong at 1.65 is an indication of higher relative performance. The Elder impulse system has formed strong bullish bars. In short, the stock has registered a bullish base breakout. A move above Rs 245 is positive, and it can test Rs 265.

CANBK: The stock has broken the head and shoulder pattern on the back a massive volume. It is trading below the key moving averages. It declined below the 200DMA on Monday, trading 8% below the 50DMA. The -DMI is above the prior high and above the +DMI and ADX. The RSI entered an oversold strong bearish zone whereas the MACD is below the zero line and signal line, and the histogram shows a strong bearish momentum. The elder impulse system has formed strong bearish bars, while the KST and TSI indicator has been in the bearish setup. In short, the stock broke a strong bearish pattern. A move below Rs 201 is negative, and it can test Rs 185. Maintain a stop loss at Rs 210.