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PORTFOLIO ALLOCATION

RELIANCE

RELIANCE: CMP :- 2523 Weekly ROC (1.65%)

Observation

* RELIANCE has been in a strong uptrend since April 2020. In the last month, the Stock has given a ‘CUP’ pattern breakout on the monthly charts which shows positive undertone of the stock for the medium to long term.

* On the weekly timeframe, the stock has confirmed ‘Channel pattern’ breakout few weeks back and it has sustained above that levels which indicates strong bullish sentiments of the stock for the medium to long term.

* On the shorter time frame, we can see that the prices have maintained its Higher Top Higher Bottom formation and has been sustaining above its 20 Day SMA since last 2 months, pointing towards the presence of bullishness in the short to medium term.

* On the indicator front the RSI plotted on the daily and the weekly charts can be seen placed above the 60 mark and moving higher, Currently the RSI on the weekly time frame can be seen moving towards upward level after bouncing off the 65 mark, indicating presence of strong momentum in the up move.

* Going ahead the 2760 (61.8% extension level of the rise from 864-2369 projected from 1830) will act as a resistance level, if the prices sustains above this level, we can see the prices move higher and test the 2908 (Potential Target of ‘CUP’ pattern).

* The key level to watch for on the downside are 2366 (3 Week Low) followed by 2205 (20 Week SMA).

NTPC

NTPC: CMP :- 139 Weekly ROC (12.60%)

Observation

* NTPC on the monthly time frame has been forming a higher high higher low pattern since Nov 2020 and sustaining at 52 week high, indicating that the long term trend of the stock remains bullish.

* On the weekly time frame the prices had been facing strong resistance at 200 Week SMA since Jun 2021, however it has give a ‘Consolidation breakout’ couple of weeks back and has sustained above 200 Week SMA.

* In the last few sessions, we witnessed a strong upward rally in the stock after forming ‘CIP formation’ (Change In Polarity) which strengthen the positive sentiments of the stock for the short to medium term.

* On the indicator front the RSI plotted on the daily and the weekly time frame can be seen placed above the 65 mark, currently it seems to be moving higher level, indicating that the bulls have taken control of the trend.

* Going ahead the key resistance level to watch out for is 156-157 (Previous swing high and 50% retracement level of previous down move from 242-73) followed by 178 (61.8% retracement level of previous down move from 242-73).

* The multiple touch point level of 121 will act as a red flag level, followed by 109 (5 Month Low).

POWERGRID

POWERGRID: CMP :- 191 Weekly ROC (8.91%)​​​​​​​

Observation

* POWERGRID has been in a strong uptrend since June 2020. A simple bar chart analysis of the monthly time frame chart will suggest that the stock is in a long term bullish trend.

* On the weekly time frame we can see that the prices broke above the Consolidation phase with volume confirmation which has been forming since June 2021. In the last week, the prices regained their momentum and made a fresh Life Time High @ 198 and sustained near record high levels which shows strong bullish undertone of the stock.

* On the shorter time frame we can see that the prices have made Triple Bottom formation near 100 Day SMA and moved up which confirms bullish sentiments of the short to medium term trend.

* On the indicator front the RSI plotted on the daily and the weekly charts can be seen placed above the 60 mark and moving higher with prices, indicating presence of bullish momentum in the prices.

* Going ahead the 227 (61.8% extension level of the rise from 91-188 projected from 167) will act as a resistance level, if the prices sustains above this level, we can see the prices move higher and test the 243 (78.6% extension level of the rise from 91-188 projected from 167)

* The key level to watch for on the downside are 175 (20 Week SMA) followed by 167 (Swing Low).

M&M

M&M: CMP :- 827 Weekly ROC (6.21%)

Observation

* M&M on the monthly time frame seems to have entered a corrective phase after testing a high 952 and for the past 4 months the prices have been moving in a range and has been holding the support level of the 720.

* On the weekly chart we can see that the prices have formed Triple Bottom formation near 720 mark and moved up sharply with volume confirmation. Also it has breached and sustained above downward slopping trend line with volume confirmation which has been forming since May 2021, indicating that the stock is ready for the next Bull Run.

* On the daily charts as well, the stock has maintained its Higher Top Higher Bottom formation and sustaining above its 200 Day SMA with the CIP formation (Change In Polarity) which confirms the bullish undertone of the stock for the short to medium term.

* On the indicator front the RSI plotted on the daily and weekly chart can be seen placed above the 55 mark, currently it can be seen moving higher as the prices rise indicating that the bulls are in control of the trend.

* Looking at the price action we believe that this stock is a prefect BUY candidate, going ahead we can expect the prices to move higher towards 952 levels (52 week high), if the prices manage to move above this level, we can expect the prices to move higher and test the 993 (Life Time High) and eventually move towards 1078 mark (50% extension of the rise from 245-952 projected from 724).

* The Key support level for the stock is placed at 782 (20 Week SMA), if the prices managed to breach below this level, we can expect further down move towards the 720 mark (Swing Low).

CANBK

CANBK: CMP :- 176 Weekly ROC (12.14%)​​​​​​​

Observation

* On the monthly chart, CANBK can be seen forming a higher high higher low pattern since Nov 2020 and current the stock is sustaining at multi month highs indicating that the long term trend of the stock remains strongly bullish.

* On the weekly time frame, we can see that the stock has given an ‘Ascending Triangle pattern’ breakout with volume confirmation in the last week which shows strong bullish undertone of the stock for medium to long term.

* On the daily timeframe, the stock prices have moved up sharply after giving an ‘A-B-C pattern’ breakout and it is sustaining at 52 week high which indicates strong bullish sentiments of the stock for the short to medium term.

* On the indicator front, the RSI plotted can be seen plotted above the 60 mark and moving towards higher levels, indicating increasing bullish momentum in the prices.

* To sum it up, CANBK has resumed its up move after finding support near the 140—145 range, going ahead we expect the momentum buildup to take the prices higher towards the 200 (200 Week SMA). If the prices manage to sustain above this level we might see the prices move higher and test 234 (Swing High & Nov 2019 High)

* Our bullish view will be negated if the stock moves below the 152 mark (5 Week Low) beyond which we can expect further downfall towards 140 (Multiple Touch Point Levels)

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