Chart Busters: Top trading set-ups to watch out for on Friday.

On the weekly expiry day, the benchmark index Nifty was traded in a narrow range of 94 points, which is the lowest trading range in the last 9 trading sessions. The broader market has outperformed benchmark indices on Thursday. The Nifty Midcap 100 index has marked a fresh all time high of 31365.65 level. The advance-decline ratio was in the favour of advancers.

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

Mishra Dhatu Nigam: Considering the weekly chart, the stock is oscillating in the range of Rs 237-Rs 172.80 level. The zone of Rs 172.80-Rs 176 is acting as a strong support zone for the stock. The stock has taken support in the same zone three times. Recently, the stock has formed Doji candle near the support zone on the weekly chart and thereafter witnessed higher bottom. On Thursday, the stock has given a breakout of a downward sloping trendline resistance on the daily chart. This breakout was confirmed by robust volume. Along with this breakout, the stock has surged above its crucial 200-Day EMA level, which is a bullish sign. The short-term moving averages, i.e. 13-day EMA and 20-day EMA is in a rising trajectory. The leading indicator, 14-period daily RSI has surged above the 60 mark for the first time after 74 trading sessions. The RSI is in rising mode and it is trading above its 9-day average. The momentum indicator MACD line has crossed above the signal line, which resulted in the histogram turning positive. Hence, we would advise the traders to be with a bullish bias. On the downside, the zone of Rs 189-Rs 186 is likely to act as crucial support for the stock. While on the upside, the level of Rs 206, followed by Rs 216 level may act as immediate resistance for the stock.

Shankara Building Products: After registering the high of Rs 648.80, the stock has witnessed minor correction along with low volume. The correction is halted near the 20-day EMA level. The stock has formed a strong base near the 20-day EMA level and on Thursday, it has given five days consolidation breakout on the daily chart. This breakout was supported by above 50-days average volume. Currently, the stock is trading above its short and long-term moving averages. These averages are in a rising trajectory, which is a bullish sign. A daily momentum indicator RSI reading is above 60 level with a positive crossover which points out a positive breath in the stock. The MACD stays bullish as it is trading above its zero line and signal line. On the daily timeframe, ADX is above 22 level, which suggests that the trend is yet to be developed. Directional indicators continue in the ‘buy’ mode as +DI continues above –DI. Based on the above observations, we expect the stock to continue its upward movement and test levels of Rs 650 followed by Rs 684 in the short term. On the downside, the 20-day EMA is likely to act as crucial support for the stock, which is currently quoting at Rs 586 level.