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

On Tuesday, the benchmark index, Nifty has marked the fresh all-time high of 18604.45 level in the first 15-minutes of the trading session. Thereafter, the index was unable to move above its first 15-minutes candles high and witnessed correction. This resulted in the formation of a bearish belt hold like candlestick pattern on the daily chart. The Nifty Midcap 100 and Nifty Smallcap 100 has formed a sizeable bearish candle on the daily chart. The overall advance decline was tilted in the favour of the decliners. It hinted that the market participants prefer to book the profits at higher levels.

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

JK Tyre & Industries: The stock has formed a high wave like candle as of August 06, 2021, and thereafter slid into the period of consolidation. During the period of consolidation, the stock has formed a symmetrical triangle pattern on the daily chart. On Tuesday, the stock has given a breakout of symmetrical triangle pattern along with above 50-days average volume. Post the breakout, the stock has marked the high of Rs 171.70 and thereafter it has witnessed minor profit booking at higher levels as selling pressure emerged in the market. However, since the last two trading sessions, the stock is outperforming the benchmark indices, which is a bullish sign. Currently, the stock is trading above its short and long-term moving averages. These averages are in rising mode. Interestingly, the daily RSI has also given symmetrical triangle pattern breakout, which is a positive sign. Recently, the momentum indicator daily MACD line has crossed above the signal line, which resulted in the histogram turning positive. 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 next couple of trading sessions. As per the measure rule of symmetrical triangle pattern the first target is placed at Rs 175 followed by Rs 184 level. On the downside, the 8-day EMA will act as strong support for the stock.

Strides Pharma Science: The stock has formed a bearish belt hold candlestick pattern as of January 08, 2021, and thereafter marked the sequence of lower tops and lower bottoms. From the high of Rs 999, the stock has lost nearly 44 per cent in just 153 trading sessions. After registering the low of Rs 562.55, the stock has witnessed counter-trend consolidation for the next 37 trading sessions. On Tuesday, the stock has given a breakdown of upward sloping trendline support along with relatively higher volume. Currently, the stock is displaying a bearish trend as it is trading below its short and long-term moving averages. These averages are in falling mode. The 200-DMA crossed over the 50-DMA 71 days ago, called the 'death crossover', which is a long term bearish signal. The weekly RSI is in a super bearish zone and it is in falling mode. The daily RSI has given a bearish crossover. The weekly MACD stays bearish as it is trading below its zero line and signal line. Considering all the above factors, the stock is likely to extend its southward journey. On the downside, the level of Rs 500 will act as minor support. While on the upside, the zone of Rs 587-591 will act as crucial resistance for the stock.