The Indian benchmark kicked off the morning on a positive note as optimism is diluted in the air on account of oath ceremony that will be taken for the largest chair of the country and nomination of various ministers for various departments of the country on the basis of their functions. The 50-stock bundle is holding its intraday gains and expected to witness more upside once it will break 11,970 levels. While all indices have delivered a mix performance in first half of the session, Nifty Financial services gained the most, currently trading at 13,478, 1% above from its previous close. On daily scale, the index has witnessed a steep rally after forming a ‘Breakaway Gap’, which signals for higher potential in the counter. The index is trading above 89 days (High-Low) Simple Moving Average. The index is expected to continue its bull rally and find resistance near 2.618% Fibonacci Extension at 13,779 levels. RSI is trading at 69.96 levels and showing no signs of divergence and overbought. Awesome oscillator is hinting for more upside. Although Awesome oscillator and RSI are not the only indicators to dictate the future prices, one can make use of other tools like Fibonacci, Andrew Pitchfork, Chart and Harmonic Patterns.
Some stocks of this counter are also witnessing heavy volumes and momentum that are convincing the emerging trend.
- Edelweiss: Top gainer in financial services sector is trading at 188.79, 3.05% above from its previous close. The stock is trading above 200 days Exponential Moving Average.
- ICICI Prudential: The stock is trading at 394.25, 3.07% above form its previous close. There has been a block deal of 502,264 shares on May 23, 2019. The stock is trading above 30 days and 50 days Exponential Moving Average.
- Cholamandalam Financial Services: The stock is trading at 1,505.25, 2.45% above form its previous close. There has been a block deal of 66,566 shares on April 23, 2019. The stock is trading above 30 days and 100 days Exponential Moving Average.