Equity benchmarks rallied more than 2 percent again on November 6, extending their winning streak to seven consecutive sessions, despite weak market breadth. On the NSE, around 2,110 stocks declined, while 1,186 advanced. The market may extend its uptrend during Muhurat Trading; however, consolidation cannot be ruled out thereafter following the sharp rally. Here are some short-term trading ideas for investors and traders to consider:
Vaishnavi Jagtap, Senior Research Analyst – Technical at Axis Direct
With an almost 11 percent rally during the current week, GAIL has decisively broken above the downward-sloping trendline that had capped its gains over the past couple of years, crossing the Rs 178 mark on a closing basis. The breakout was accompanied by strong volumes, indicating a robust comeback by the bulls.
Buying support emerged around the 30-week SMA (Rs 170), which continues to remain a crucial support zone. The stock is comfortably positioned above its 20-day, 50-day, 100-day and 200-day Simple Moving Averages (SMAs). These averages are also gradually trending upwards along with the price, further confirming the bullish trend.
The daily, weekly and monthly Relative Strength Index (RSI) readings are in favourable territory, indicating improving momentum across all time frames.