L&T Technology Services: Seller exhaustion near key support, corrective bounce ahead

This one is a perfect candidate to play a broader market bounce…

Daily chart shows back-to-back doji candles near key support of 1404.90 (Feb. 19 low). Doji is considered a sign of indecision, but when it appears after a prolonged sell-off, it mainly represents seller or bearish exhaustion.

Also note the bull divergence developing on the 14-day RSI.

Hence, m expecting a bounce to 1500.

01.L&t Technology Services L -  DAILY-S1.png

 

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Oriconent looks good to buy

Oriconent is looking north with a bullish divergence of the RSI following a prolonged sell-off.

Daily candle is looking like a bull hammer. I see this one going to 23 this week. As of now, it is trading at 20.20.

03.Oriconent -  DAILY-N.png

 

 

HDFC Life Insurance drops 4%

HDF life insurance is being offered with prices currently down nearly 4%. Daily chart shows bearish RSI divergence. A closer look also shows the RSI has charted a head-and-shoulders pattern.

More importantly, it has been a high-volume bearish reversal.

All-in-all, it looks like a sell on rise setup. I can see this falling to 460 in few days. As of now, its trading at 481.

03.Hdfc Life Insurance Compa -  DAILY-N.png

 

Bought Yes Bank shares

Bought Yes Bank shares soon before press time. Expecting a solid corrective bounce to 108.50. A close higher would expose 140.

Rationale

Bullish inside reversal candle on weekly + RSI on weekly bouncing up from oversold territory.

High-volume bullish divergence of RSI on the daily chart.

Daily chart

03.Yes Bank Limited -  DAILY-N.png

Nifty at day’s low

Nifty is trading at day’s low of 11,269, having faced rejection at the trendline connecting October 2018 and Feb 2019 lows.

With reliance industries charting a head-and-shoulders breakdown, Nifty looks set to extend losses further to 200-day MA lined up at 11,132.

Daily indicators how there is little out there that can bring cheer to the bulls.

01.Nifty 50.IX - DAILY-S1

Oracle Fin Serv Soft: Low-volume bounce

Oracle is in a recovery mode today, although it’s a low-volume bounce, as seen in the hourly chart.

So, the path of least resistance remains to the downside, as suggested by Wednesday’s symmetrical triangle breakdown on the hourly.

I expect this share to fall back to 3200 and would be a buyer of this one only after a daily close above the 100-day MA, which served as strong resistance from July 15 to July 23.

03.Oracle Fin Serv Soft Ltd. - HOUR1-N