Chart Busters: Top trading set-ups to watch on June 14

The Nifty breached the level of 15830 decisively and tested its previous low, breaking its May 12 low, while the low of March 8 is just at an arm's length distance.

The Nifty opened with a 320-point gap down and continued to trade lower. A close below 15671 will trigger further selling pressure in the market. The MACD has given a fresh sell signal. The 14-period daily RSI has sharply declined to 35 zones. The current fall may test below 15600 levels. Furthermore, there is a possibility of testing level 15323, after a brief sideways consolidation. Though the current price structure looks like triple bottom, it may not hold. On the upside, a move above 15885 will attempt to fill the gap, and it may take longer than expected time to fill this gap. Avoid trading sharp bounces. The market is in a confirmed downtrend.

TATA STEEL

The stock has closed at a new 52-week low and the prior low. The 20DMA acted as a resistance for the past few weeks. The MACD is about to give a sell signal. It is also below the moving average ribbon, and the MACD is below the zero line. The RSI is in a strong bearish zone. -DMI moved above the ADX, and +DMI. The Elder impulse system has formed a series of bearish bars with TSI giving a fresh sell signal. It is also below the Anchored VWAP support. In short, the stock broke all the key support and closed at a new low. A move below Rs 991 is negative, and it can test Rs 955. Maintain a stop loss at Rs 1000. Below Rs 955, continue with a trailing stop loss.

ADANI ENT  

The stock has retraced more the 60% of the prior swing. The fall with higher volume shows the massive distribution. It has decisively broken below the key short and medium-term moving averages. It is below the moving ribbon. The MACD has given a fresh sell signal. The RSI declined below the 50 zone sharply below the Anchored VWAP support and the TSI has given a fresh sell signal. The Elder impulse system has formed a strong bearish bar. In short, the stock closed below the key supports. A move below Rs 2071 is negative, and it can test Rs 2025. Below this level, it can test the prior swing low of Rs 1903.