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

The pullback rally in benchmark index Nifty has continued for the third consecutive trading session. On the weekly expiry day, Nifty index has gained 117.15 points or 0.69%. Despite this gain, the index has formed doji candle. The formation of doji candle near the resistance zone is indicating exhaustion of pullback rally. Going ahead, the Nifty index has crucial resistance in the zone of 17149-17170 level, which is the confluence of 20-day EMA level and 61.8% Fibonacci retracement level of its prior downward move.

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

Radico Khaitan: After registering the high of Rs 1214.80, the stock has witnessed minor correction along with below-average volume. The correction is halted near the 61.8% Fibonacci retracement level of its prior upward move (Rs 864.05-Rs 1214.80) level.

On Thursday, the stock has given a breakout of the downward sloping trendline on the daily chart. Further, the breakout is supported by a robust volume of nearly four times of 50 day's average volume, indicating strong buying interest by market participants. As the stock is trading at its all-time high level, it is trading above its short and long-term moving averages. These averages are edging higher.

The stock's Relative Strength Index (RSI) has reached its highest value in the last 14-days, which is bullish. Also, it has managed to close above its prior swing high. The weekly RSI is in the super bullish zone and it has given a bullish crossover. Recently, the MACD line just crossed the signal line, and the histogram became green. On the daily timeframe, ADX is below 10 which suggests that the trend is yet to be developed. Directional indicators continue in the ‘buy’ mode as +DI continues above –DI.

The technical evidence indicates a strong upside in the coming days. On the downside, the 20-day EMA is likely to provide the cushion in case of any immediate decline. The 20-day EMA is currently placed at Rs 1095.40 level.

Gland Pharma: From the listing price, the stock has gained 154.38% in just 38 weeks. After registering the high of Rs 4350, the stock has witnessed minor throwback along with low volume. The throwback is halted near the 38.2% Fibonacci retracement level of its prior upward move.

The stock has formed a strong base near the support zone and initiated its northward journey. On Thursday, it has given base patterns breakout along with robust volume. Along with this breakout, the weekly RSI has surged above the 60 mark, which confirms the breakout. On the daily chart also, the RSI has surged above the 60 mark for the first time after 88 trading sessions. The daily MACD stays bullish as it is trading above its zero line and signal line. The fast stochastic is also trading above its slow stochastic line since the last four trading sessions.

Technically, all the factors are currently aligned in support of the bulls. Hence, we would advise the traders to be with a bullish bias. On the upside, the first resistance is placed at Rs 4072, followed by the 4180 level. On the downside, the 20-day EMA will act as strong support for the stock.