as it failed to close above 11,000 levels. Failure to make a higher high crossing previous day’s high will resume the corrections dragging it lower to levels of 10,725-10,560.
On the flip side, a sustained trade above 10,900 will trigger a short-covering rally to levels of 11,010-11,100.
On the weekly chart, Bajaj Auto has taken support at a trendline formed joining major lows from 2016 onwards.
A sustained trade above this trendline support i.e. Rs 2,450 will resume the uptrend taking it higher to levels of Rs 2,810-2,950. Further, on the daily chart, the stock has started forming higher highs and higher lows after taking support at the Rs 2,450 levels indicating a short-term trend reversal.
RSI has turned higher from oversold levels which confirms that the downtrend is losing steam. The stock may be bought in the range of Rs 2,600-2,650 for the targets of Rs 2,810-2,950, and keep a stop loss below Rs 2,450.
On the weekly chart, Divi’s Laboratories is on the verge of a breakdown from the neckline of a head & shoulders pattern placed at Rs 1,520.
Further, it has turned south after facing resistance at the 61.8 percent Fibonacci retracement level which suggests weakness. On the daily chart, it has broken down from a channel pattern suggesting lower levels in the coming trading sessions.
RSI has also turned southward from the resistance zone of 60 which favours the bears. The stock may be sold in the range of Rs 1,580-1,570 for targets of Rs 1,475-1,400, and keep a stop loss above Rs 1,640.
On the weekly chart, UPL has broken down from the recent low of Rs 555 suggesting that lower levels may be witnessed in the coming trading sessions. Further, volumes have been higher in the breakdown which suggests weakness.
Moreover, the stock is making lower lows and lower highs suggesting bear dominance in the stock. Further, RSI has turned lower from the 40-level which is favouring the bears.
The stock may be sold in the range of Rs 545-535 for targets of Rs 510-490, keeping a stop loss above Rs 570.
