Technical Trader

Follow @mathsofmoney Let us look at the daily chart first: Kotak Bank was moving in an upward Wedge since April 2019 on the daily chart basis. Even though it has been able to plough back all of its covid beating, got back into the same wedge, however, now stands at the top of the wedge which is a strong resistance for Kotak Bank to cross in order to continue its upwards journey.  As is evident from last few days of November, Kotak Bank has tried to cross over the top of the wedge but couldn't close successfully above it. At the same time there was no severe selling at this level to suggest any imminent downward movement. The moot question is whether there has been consolidated at 1900 levels or there is distribution. In order to understand this lest first see the news flow which has been driving the prices for Kotak Bank.  Acquisition of Indusind Bank The push Kotak Bank prices received from the levels of 1300 in October was first from the news of acquisition of Indusind Bank and l

The Background  Reliance has formed three #Doji candles over last four days of November-2020 series expiry. All these three Doji's were formed within the intraday price range of 1920-1980. This kind of formation on monthly expiry of a derivative series signifies that Reliance Industries is all set for a sharp movement on the side of the breakout of the price range. The Weakness First trading day of December series, Reliance finally broke the 1920 price range on the lower side during intraday trades, however, closed within the same range at 1929. Also RSI of Reliance slipped below 40 once again which shows the stock is still bearish and could see further correction unless we see divergence in RSI. This shows that there is a higher possibility of a breakdown in Reliance once there is closing below 1920 and this weakness could drag reliance down to test previous low of 1835. Upon closing below 1835, there is Fibonacci Retracement support at following levels: 61.8% - 1795 50% - 1618 F