Nifty, Bank Nifty, Divi's Labs, UBL, Jubilant Foodworks I Top money-making strategies for investors

Bonanza Portfolio highlights that since 3rd November 2020, Nifty 50 was trading well above its 21-day exponential moving average on the daily time frame. But on 27th January 2021, benchmark index Nifty witnessed a negative opening below its 21-day EMA following its global peers and continues to trade with hefty selling pressure throughout the day.

Since Nov 20, prices were trading within a rising channel pattern but on 27th Jan 2021 benchmark index witnessed a negative breakdown of a rising channel pattern on a daily interval. A breach of 21 days EMA along with a cluster of channel pattern breakdown indicates nifty may trade with a bearish shade in further trading sessions.

See Zee Business Live TV Streaming Below:

Currently, INDIA VIX is near its horizontal trend line resistance which is placed near 25.20 levels on the daily chart. If the INDIA VIX chart witnessed a breakout above its resistance levels then nifty may sail through sharp volatility with a bearish bias.

The latest round of FICCI’s Economic outlook survey has stated that India’s gross domestic product (GDP) is expected to contract by 8 percent in the current financial year (FY21).

BANK NIFTY has witnessed a four months long rising channel pattern breakdown on the daily interval and the price has closed below its 21-day exponential moving average. Moreover, prices have formed a bearish Double top pattern on the weekly time frame which indicates we may witness a sharp profit booking in the coming sessions if prices don’t close above the pattern.

Nifty 50 has given a negative breakdown so every uptick in the index should be utilized for a fresh shorting opportunity. Nifty will likely face a strong resistance near 14250 levels which is capped under a 21 day EMA. Meanwhile on the lower side support can be seen at 13700 which are again under the brace of 50 days EMA.

Divi's Labs: SELL| CMP: Rs. 3483.05 Target RS.3305|Stop Loss Rs. 3585|Return 05.11%

Divi's Labs on the daily time frame has witnessed a Rising channel pattern breakdown and trading below its trend line support. Prices have closed below their (21 & 50) day exponential moving averages on the daily chart, which is negative for Divi's Labs counter in the short term. Momentum oscillator RSI (14) has closed below its horizontal trend line support with a negative crossover which is placed near 58 levels on the daily interval. Bonanza Portfolio expects Divi's Labs prices to drift lower in the coming trading sessions.

UBL: BUY| CMP: Rs. 1301.30 Target RS.1385|Stop Loss Rs. 1248|Return 06.45%

UBL prices have taken firm support near their 21-day exponential moving average on the daily time frame and looking to accelerate higher. UBL counter is trading in a higher high higher bottom formation and prices have retraced 23.60 percent from their previous intermediate bottom on the daily time frame.
Positive divergences on secondary oscillators with rising volumes also suggest that the up-move could continue in the upcoming sessions as well for UBL.

Jubilant Foodworks: SELL| CMP: Rs. 2638.15 Target RS.2495|Stop Loss Rs. 2720|Return 05.42%

Jubilant Foodworks prices have witnessed a failure of a higher bottom formation and breach its rising channel pattern on the daily interval. Jubilant Foodworks counter is trading below its 21-day exponential moving average on the daily chart, which is negative for the prices in the near term. Jubilant Foodworks stock has formed a bearish engulfing candlestick pattern on the weekly chart and is trading below the same which adds more confirmation to the current bearish setup.