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

On Tuesday, the Nifty opened with a positive gap and sustained the opening gains, but it experienced volatility. A sudden surge of about a hundred points in the last 30 minutes surprised the traders. Tuesday’s candle body is stuck between 50 and 200DMAs, and any close below or above the moving averages will have a directional impact. The RSI also developed a higher low. In any case, if the RSI closes above 51.5, the bullish reversal will get a confirmation. There have been a series of gap openings in the last two weeks. It is difficult to take positional trading decisions.

As the index is placed in a neutral zone, the Nifty needs to close above the 17414 or above the 20DMA to get the bullish strength. The erratic behaviour in price action is also a worry point now. As the monthly expiry is just two days, the volatility will increase further. The rollovers were improved but still below the previous month.

TITAN: The stock has broken out of 12-day base formation with a very high volume. The stock decisively closed above the 20DMA. Today it also closed 1.49% above the 50DMA. It closed above the Anchored VWAP. The MACD has given a fresh buy signal. The RSI crossed the 50 zones. The TSI has also given a buy signal. KST is about to give a bullish signal. The Elder impulse system has formed a big bull bar. In short, the stock is out of the base and looks bullish. A move above Rs.2550 is positive, and it can test Rs 2604. Maintain a stop loss at Rs 2526.

ATUL: The stock has broken down the descending triangle. The 20DMA has been acting as a strong resistance for the last eight sessions. It closed below the 50 DMA also. The MACD line fell below the zero line, and the histogram shows an increased bearish momentum. The -DMI is above the +DMI. It closed below the Anchored VWAP support. The Elder impulse system has formed a very big bearish bar, while the TSI and KST indicators show the bearish setup. In short, the stock has broken down the key supports. A move below Rs 9363 is negative, and it can test Rs 9144. Maintain a stop loss at Rs 9434. Below Rs 9144, continue with a trailing stop loss.

Also read: Opening bell: In response to negative global cues, Sensex and Nifty both decline