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 the current week's nearly 11 percent upmove, GAIL has decisively surpassed the down-sloping trendline breakout of the past couple of years at the Rs 178 level on a closing basis. This breakout is accompanied by huge volumes, indicating a strong comeback of bulls.
Buying support appeared around the 30-week SMA (Rs 170), which remains a crucial support zone. The stock is well placed above its 20, 50, 100 and 200-day simple moving averages (SMAs). These averages are also inching up with the price rise, which reconfirms the bullish trend.
The daily, weekly and monthly Relative Strength Index (RSI) is in favourable territory, indicating rising strength across all time frames.