Hot Stocks | LTI, Voltas, L&T three stock ideas for the next 3-4 weeks
Episode 2369, Apr 03, 2020, 01:30 AM
The benchmark index Nifty on April 1 witnessed a smaller degree upward rising trend line breakdown.
The index, on the daily chart, has given a pennant pattern breakdown. Pennant pattern normally acts as a continuation pattern of the prevailing trend.
The Indian stock market witnessed one of the steepest monthly falls and shut the shop in deep red with a fall of more than 23 percent in March 2020 on a monthly closing basis.
Momentum Oscillator RSI (14) seems to have flattened out in an oversold zone and looks least concerned to spike on weekly charts.
Nifty confirmed its closing below a 100-month exponential moving average (EMA), which is placed at around 8,850 level on the monthly time frame.
Previously, 100-EMA on the monthly chart was breached during the period of November 2008 to February 2009, and their aftermarket witnessed a sharp reversal and since then it never revisited its 100-EMA on a monthly interval.
Bank Nifty is underperforming the benchmark index Nifty on the weekly chart which is observed by relative strength (RS) indicator.
In the banking sector, state-run banks are underperforming private sector banks. In the majority of banking stocks, technical indicators and oscillators are in oversold zone and are not in any hurry to spike up.