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Nifty, as shown in this 30 minutes chart, fails to go up to the upper end of the channel. This is generally known as a return line failure and signifies strength/weakness depending on which side the failure occurs. This means that it is likely that it may not find support at the lower end of the channel this time. While, for the time being, we shall assume that it will find support at 6250-6260, yet we should be prepared for lower levels this time around. The lower levels of support for Nifty are 6157 and 6071.
ICICI Bank has made a pattern, which is not exactly a double bottom pattern, yet, is quite similar to it. It has broken above its resistance line today with a long blue candle with almost three times the volumes and also the RSI has broken above its resistance line. All these are positives for this stock. One can consider buying ICICI Bank at around 1360 with a stop below 1300 for a target of around 1550.
Idea Cellular and its RSI are pushing against their respective resistance lines near 140 and 56 respectively. A long range blue candle tomorrow with heavy volumes should see a breakout in both the price as well as the RSI. Looking at the price and volume pattern more closely, it also looks like a rounding bottom formation. Considering it to be just another pattern gives us a target of 170 while if it is indeed a rounding bottom formation then we can see the price much higher in the next couple of months. Keep a stop loss of 125 for the time being. Buy only above 140.
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