Stock Pick for Thursday, July 22, 2021

  • Stock Market Analysis

In the previous session, the Nifty Index closed with a net loss of 120 points. It’s been the 3rd day in a row when we have seen losses in the market. Prices have been constantly forming bearish candles and moving in lower highs and lower lows formation. If we look from an immediate short-term angle, the index is placed at a crucial level and there are two possibilities either break below or reversed from the same level. Hence a cautious and stock-specific approach is advisable for the next trading day.

Some short covering may be seen today but the overall market is in the bearish zone. Following stock has seen technical breakout and traders can accumulate this stock at dips.

Havells India Ltd (NS: HVEL )

NSE:HAVELLS   BSE:517354  Sector: Capital Goods – Electrical Equipment

In the daily time frame, Havells India Ltd share prices are moving in a well-channelized manner. Also, we can see that stock formed a ‘Double Bottom pattern’ inside the Channel and closed above the neckline of the pattern. In the last trading session, Stock formed a Hammer candle with a long lower shadow on the chart and closed with a net gain of 1.28%. This can be a crucial level as Hammer candle is found in the middle of the trend which is not a favorable level but if the price breaks above the previous day's high then it will be a good opportunity to buy the stock.

We have applied Donchian Channel on the chart, which is used for identifying the breakout of a stock that helps the traders to take either long or short positions. In the above chart stock prices are trading near the Upper line of the Donchian Channel. If the price goes above the upper line with a positive candle, then it is a signal to make a long position.

In short, the outlook for Havells will remain positive. Now a move above 1110 will confirm the uptrend and prices can move higher levels towards 1167 levels. This outlook is valid as long as we do not see any closing below 1060 support.

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  • c v Sastry @c v Sastry
    exceptional recommendation
    Like 0
  • Vineela Yadlapalli @Vineela Yadlapalli
    their results are pathetic. not sure why did u choose this for the day
    Like 0
    • vignesh rc @vignesh rc
      we thought there results are four fold, but you are right sir, may i know how you predicted..
      Like 0
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  • Dundesh Bagayi @Dundesh Bagayi
    sir,in intrday. I lost much money ...so planning to holding,,,pls suggest sir....
    Like 2
    • Saswata Chowdhury @Saswata Chowdhury
      Learn the fundamentals and technical first and try paper trade before putting your money on the table.
      Like 1
    • PRASAD SONAWANE @PRASAD SONAWANE
      @Dundesh Bagayi firstly take education otherwise you will lose your hard money
      Like 0
    • Ravi Fichadia @Ravi Fichadia
      1st need RR management without risk manag can't catch profit
      Like 0
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