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

On Wednesday, the benchmark index Nifty has opened flat and mostly traded in a narrow range of 83 points. However, the last hour of trading sessions witnessed a fall of nearly 136 points. The Nifty index has closed at 18210.95 with a loss of 57.45 points or 0.31%. The price action has formed a bearish candle. The Nifty Midcap 100 and Nifty Smallcap 100 has outperformed the benchmark indices on Wednesday. The advance-decline ratio was in the favour of advancers.

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

Minda Corporation: Considering the daily chart, the stock has given a downward sloping trendline resistance breakout. This breakout was confirmed by above 50-days average volume. Additionally, the stock has formed a sizeable bullish candle on breakout day which adds strength to the breakout. The stock is trading above its important short to long-term moving averages i.e. 20, 50, 100 and 200 DMA. It is also in a rising trajectory.

Interestingly, the daily RSI has also given downward sloping trendline resistance breakout. Currently, daily RSI is quoting at 64.70 and it is in rising mode. The weekly RSI has also surged above the 60 mark for the first time after August 2021. The MACD line just crossed the signal line, and the histogram became green. Moreover, it has also given the buy signal in Martin Pring’s long-term KST set-up. On the daily timeframe, ADX is 12.35 and suggests that the trend is yet to be developed. Directional indicators continue in the ‘buy’ mode as +DI continues above –DI.

In a nutshell, the stock has registered a bullish breakout along with volume confirmation. On the upside, the level of Rs 148 will act as minor resistance. While on the downside, the 8-day EMA will act as strong support for the stock.

K.P.R. Mill: Majorly, the stock is displaying a bullish trend as it is trading above its short and long-term moving averages. These averages are in the desired sequence, which suggests the trend is strong. For the last 22 trading sessions, the stock is trading in a falling channel. Currently, it is on verge of giving the channel breakout on the daily chart. On Wednesday, the stock has touched the upper trendline of the falling channel. On Wednesday, the stock has seen robust volume above the 50-days average volume. This shows the accumulation before the actual breakout happen. Daily RSI is trading above 50 levels, indicating a bullish setup for the stock. The fast stochastic is also trading above its slow stochastic line.

Going ahead, the stock is on verge of seeing a trendline breakout. If it moves above the Rs 482-Rs 485 zone, then we may see a sharp upside in the stock. On the downside, the 20-day EMA will act as strong support, which it is currently quoting at Rs 449 level.