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

On Thursday, the Nifty index has gained 47 points or 0.27%. The price action has formed a Dragonfly Doji candle on the daily chart. The long lower shadow of the candle is suggesting buying interest at days low. The Nifty Midcap 100 and Nifty Smallcap 100 has outperformed the benchmark indices, while Nifty Media has gained 3.57% in Thursday's trading session. The overall advance-decline was tilted in the favour of the advancers, whereas the India VIX has tumbled nearly 4%.

Here are the top trading set-ups to watch out for Friday.

TTK Healthcare: The stock has formed a Dark Cloud Cover candlestick pattern as of July 20, 2021, and witnessed correction thereafter. The correction is halted near the 50% Fibonacci retracement level of its prior upward move and it coincides with the 200-day EMA level.

The stock has formed a strong base near the support zone and on Thursday, it has given a breakout of downward sloping trendline breakout on the daily chart. This breakout was supported by a robust volume of more than 13 times of 50-days average volume. This indicates strong buying interest by market participants. The 50-days average volume was 12532 while on Thursday the stock has registered a total volume of 1.68 lakh. In addition, the stock has formed a sizeable bullish candle on breakout day, which adds strength to the breakout.

Further, the stock has surged above its 20-day EMA, 50-day EMA and 100-day EMA on Thursday, which is a bullish sign. Talking about the indicators, the MACD line is above the signal line. The MACD histogram suggests bullish momentum. And most importantly, the MACD histogram crossed the prior swing highs. The 14-period RSI on the daily time frame has marked a fresh 14-period high and also, it has surged above its prior swing high. The weekly RSI has also surged above the 60 mark.

In a nutshell, the stock has registered a strong breakout along with volume confirmation. On the upside, a prior swing high of Rs 825, will act as minor resistance for the stock.

Granules India: Considering the daily chart, the stock has given a symmetrical triangle breakout on Thursday. Since the last two trading sessions, the volumes recorded were above the 50-days average, which is a sign of accumulation.

Along with this breakout, the stock has also surged above its long-term moving averages, i.e. 100-day EMA and 200-day EMA. Further, the short-term moving averages, i.e. 20-day EMA and 50-day EMA has started edging higher, which is a bullish sign. The daily RSI has also given consolidation breakout and it has surged above the 60 mark for the first time after 83 trading sessions.

Interestingly, the 14-period weekly RSI took support at 40-39 level historically many times and this time also it bounced exactly from the same level. The weekly RSI has given positive crossover. The ADX and +DI is above the -DI, which indicates positive strength in the stock. Pring's KST has given a fresh buy signal on the weekly chart.

Technically, all the factors are currently aligned in support of the bulls. Hence, we would advise the traders to be with a bullish bias. The 50-day EMA will act as strong support for the stock. While on the upside, the level of Rs 352.85, will act as minor resistance for the stock.