04-01-2025

🚀 Explode your stock portfolio with our weekly picks based on technical analysis! 📈

Learn from our  breakdowns and get ahead in the stock market! In this week`s video, we dive into the intricacies of stock market movements and identify potential gem stocks you shouldn`t miss. If you`re looking to enhance your trading strategies with solid, technical analysis-based insights, you`re in the right place!

Here’s what we’ll cover:

Technical Charts Analysis: Understand the visual representations that summarize the trading actions for the stocks under our scanner this week.
Identifying Breakouts: Stocks that are making a move, breaking out of their previous constraints - key for those looking to capitalize on momentum.
Finding Support and Weekly Support Levels: Essential knowledge for recognizing the points where a stock repeatedly doesn’t drop below, hinting at stability or potential uptrend. Sector Spotlight: This week, snap up opportunities in the `Railway` and `Auto` sectors – sectors showing strong chart setups and breakout patterns.
Strong Chart Setup: Learn what makes a chart setup strong and how you can use this information to your trading advantage.

Whether you are a seasoned trader or a beginner curious about the stock market, our detailed analysis ensures you get the information you need to make informed decisions. Don’t miss out on potential trading opportunities detailed in our deep dives into each sector.

📊 Each stock pick is accompanied by a detailed chart analysis, demonstrating potential support and demand area, and risk considerations to help you make trades with confidence.

04-01-2025

Technical Outlook: Honeywell Automation

Support Zone:
Honeywell Automation recently tested its weekly support level of ₹39,300–₹39,800, indicating strong buying interest near this zone. Historically, this level has acted as a reversal point, suggesting that the stock might witness a bounce if broader market conditions remain favorable.

Indicators:

• MACD Levels: The MACD histogram is showing signs of narrowing, indicating a potential shift towards bullish momentum. A crossover on the daily chart is confirming the upward trend.
• RSI Levels: The Relative Strength Index (RSI) is currently hovering near 60, signaling the stock is reversing from  oversold territory, which could lead to a reversal if the trend persists.

Key Moving Averages:
The stock is trading close to its 200-day EMA on the weekly charts, which is a critical long-term support level. Holding above this would be a bullish indicator for medium- to long-term investors

Outlook:
Given the technical indicators and strong fundamentals, Honeywell Automation appears to be at an attractive entry point for long-term investors. However, confirmation of bullish momentum via MACD and RSI levels would be key for short-term traders.

Support Area      : 39300-40800
Resistance Area: 46100-48900

04-01-2025

Technical Outlook: RVNL(CMP: 432)

Support Zone:
RVNL  recently tested its weekly support level of ₹400, indicating strong buying interest near this zone. Historically, this level has acted as a reversal point, suggesting that the stock might witness a bounce if broader market conditions remain favorable.

Indicators:

• MACD Levels: The MACD histogram is showing signs of narrowing, indicating a potential shift towards bullish momentum. An oversold zone on the daily chart is indicating a probablebegining of the upward trend.
• RSI Levels: The Relative Strength Index (RSI) is currently hovering near 46, signaling the stock is reversing from  oversold territory, which could lead to a reversal if the trend persists.

Key Moving Averages:
The stock is trading close to its 200-day EMA on the Daily charts, which is a critical long-term support level. Holding above this would be a bullish indicator for medium- to long-term investors.

Key Moving Averages:
The stock has made a Hammer Candlestick Pattern near Weekly Support zone & once the high of the pattern is broken there can be a bullish momentum in the stock.

Outlook:
Given the technical indicators and strong fundamentals, RVNL appears to be at an attractive entry point for long-term investors. However, confirmation of bullish momentum via MACD and RSI levels would be key for short-term traders.

Support Area      : 390-400
Resistance Area: 470-520

04-01-2025

Technical Outlook: IRCTC(CMP: 796)

Support Zone:
IRCTC (Indian Railway Catering and Tourism Corporation) has reached a strong 3-year weekly support zone at ₹750-780, which has consistently acted as a critical demand area. This price zone has historically triggered breakout, indicating a potential rebound if the level holds.

Indicators:

• MACD Levels: The MACD is at a key support level, with the histogram showing signs of diminishing bearish momentum. A bullish crossover could emerge soon, signaling a trend reversal.
• RSI Levels: The RSI is hovering near 40, close to oversold territory on the weekly chart. This indicates the stock may be gearing up for a recovery, as the level aligns with previous reversal points.

Key Moving Averages:
IRCTC is trading near its 200-week EMA, which aligns with the support zone. Holding above this moving average is crucial for maintaining the long-term bullish trend.

Key Pattern:
The stock is locked at the lower support of triangle pattern in the weekly charts and breakout above 800-810 levels can genertae strong momentum.

Company Overview

Dominant Market Player:
IRCTC is a key subsidiary of the Indian Railways and holds a monopoly in critical areas like online ticketing, catering services, and packaged drinking water (Rail Neer). Its unique position as a government-owned enterprise ensures consistent revenue streams and strategic importance.

Revenue Drivers:

• Ticketing: A significant chunk of revenue comes from online ticketing services, benefiting from a high internet penetration rate in India and the increasing preference for digital transactions.
• Catering: With the return of post-pandemic train operations and increasing passenger travel, catering services have seen robust demand.
• Tourism: IRCTC is expanding its footprint in tourism through packaged tours and luxury train services, leveraging India`s growing domestic and international travel sector.

Growth Prospects:
The government`s focus on railway modernization and privatization of train services offers long-term growth potential. IRCTC`s asset-light business model, combined with its monopoly, ensures sustainable profitability.

Outlook

IRCTC`s arrival at a multi-year technical support zone, combined with strong MACD and RSI levels, suggests a promising opportunity for both traders and long-term investors. A confirmed reversal backed by volume would strengthen the case for a bounce. Fundamentally, IRCTC remains a compelling investment due to its monopoly, consistent revenue streams, and strategic importance in India`s railway ecosystem.

Support Area      : 780-760
Resistance Area: 810-908

04-01-2025

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"The securities quoted are for illustration only and are not recommendatory"
Vikash Bagaria SEBI Registered Research Analyst - INH300008155
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