Chart Busters: Top trading set-ups to watch out for Monday

The benchmark index Nifty has resisted in the zone of 17170-17180 and witnessed correction. The index has lost 68.85 points or 0.40% on Friday. The price action has formed a bearish candle with a lower shadow. The overall advance-decline was tilted in the favour of the decliners. The fear index, India VIX has surged by 2.04%.

Here are the top trading set-ups to watch out for Monday.

KPIT Technologies: Stock is clearly in an uptrend as it is marking the sequence of higher tops and higher bottoms on the weekly chart. Further, it is trading above its short and long-term moving averages. These averages are in a rising trajectory, which is a bullish sign.

On Friday, the stock has given a breakout of Ascending Triangle pattern on the daily chart. This breakout was accompanied by a robust volume. Besides, the stock has formed a strong bullish candle on both weekly and daily charts, which is a bullish sign. In the last couple of weeks, the stock is outperforming the frontline indices. Also, the stock relatively outshines Nifty 500 with a decent margin. Relative strength comparison with Nifty 500 and Nifty 50 has reached to new heights. The Mansfield Relative Strength is also trading above its zero line.

The daily RSI has given positive crossover and it is in bullish territory. The weekly RSI is in the super bullish zone. The fast stochastic is trading above its slow stochastic line. In a nutshell, the stock has registered a bullish pattern breakout along with volume confirmation. As per the measure rule of Ascending Triangle pattern, the upside target is placed at Rs 610, followed by Rs 635 level. On the downside, the 13-day EMA level will act as strong support for the stock.

Phillips Carbon Black: The stock has formed a shooting star candlestick pattern as of October 04, 2021, and thereafter witnessed a sharp correction of nearly 28%. The correction is halted near the 100-week EMA level.

Considering the daily chart, the stock has formed a Head and Shoulders pattern and it is on verge of giving neckline breakout. On Friday the volumes recorded were above the 50-days average, which is a sign of accumulation before the actual breakout happen. Further, the stock is trading above its 20-day EMA and 50-day EMA level. These averages are started edging higher, which is a bullish sign.

The leading indicator, 14-period daily RSI is currently quoting at 54.05 and it is in rising mode. The weekly RSI has also given bullish crossover. The daily MACD stays bullish as it is trading above its zero line and signal line.

Going ahead, in case the stock sustains and closes above the level of Rs 234.90, will result in the neckline breakout of the Head and Shoulders pattern. In that case, the upside targets will be placed at Rs 256, followed by Rs 275 level.