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

Much on the anticipated lines, the NIFTY had a corrective day as the markets continued with their downward move to end the day with a modest loss of 43.90 points. The index has marked a lower top and lower bottom on the charts. However, it has managed to keep its head above the crucial 50-DMA level of 17438. This level is expected to act as important support on a closing basis. The NIFTY stays in a capped range; it is likely to stay in a defined range on Monday with the 100-DMA acting as overhead resistance; this level is presently at 17648. The RSI is neutral and MACD is negative. The index is continued to trade in a limited range so long as it is between the 50-DMA and the 100-DMA zone defined by 17438-17648 levels.

Here are the top trading set-ups to watch for Monday

HINDUSTAN COPPER

HINDCOPPER witnessed a sharp corrective move from 180 to 106, the pullback after that led to a formation of a lower top at 159. After this level was tested in the middle of October 2021, the stock has not taken any directional bais and is seen trapped inside a trading range. The most recent price action shows that while rebounding from the 100-, and 50-DMA which are in close proximity at 124.78 and 125.22 respective, the stock has now also managed to penetrate the 200-DMA which is at 136.05.

Also, the zone of 135-137 has multiple pattern resistance present as well. So the stock has now not only tried to take out these pattern resistances, it now trades above all three DMAs as well. It is likely to inch higher; if the present pattern resolves on expected lines, the stock may test 152-160 levels. For this to happen, staying above 124 will be crucial.

BHARTI INFRATEL

After witnessing a corrective decline from 330 levels, the stock has attempted to form a base in the 244-265 zone. This accumulation has come with a mild bullish divergence of RSI against the price. The daily MACD has shown a positive crossover; it is now bullish and above the signal line. The PPO also turned positive. With the fresh PSAR buy signal, the OBV is near its all-time high ahead of any initiation of the price move on the upside. The RS line against the broader markets has flattened and is seen trying to change its trajectory. If the present move happens on expected lines, and if the stock is able to stay above 240, it may go on to test 275 and 285 levels.

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