Technical Pick – Kotak Mahindra Bank
•Kotak Mahindra Bank is making Head and Shoulders pattern on Daily chart which is having support and
breakout point below 985.Shoulders of the pattern are taking resistance above 1055 level.
•On Daily chart,Break and sustain below 985 will see nonstop panic till 900--840 in weeks to come.
•MACD too has given the negative crossover (Sell signal) which indicates that down side seems certain in it.
•Daily 14 period RSI has also fallen from higher levels to around 45 This could mean Continuation of downside momentum in the stock price ahead possibly a breakdown this time.
• Traders don’t go for aggressive or positional buying at all because trend looks negative and we expect panic to remain continue till 900--840 mark in coming weeks.
For positional trade, stop loss seeing above 1055 on closing basis which in unlikely to breach in near terms.
Trading Recommendation (4th Dec 2017)
Sell Kotak Mahindra Bank future below 985 and for the initial downside target of 900--840++ mark with stop loss above 1055 on closing basis.
More will update soon!!!
