The market was caught in a bear trap on May 6 with the benchmark indices falling 1.6 percent.
The fear of faster policy tightening by US Federal Reserve and recession and inflation concerns raised by the Bank of England weighed on the sentiment.
Stocks that were in action included Hero MotoCorp, Abbott India and Power Grid Corporation, which bucked the trend and were among the top five gainers in the futures & options segment.
On the daily chart, the stock has rebounded sharply from Rs 2,146 and confirmed “double bottom” trend reversal pattern.
The stock is in a down trend on the medium-term time frame but on the short-term chart, we observed strong accumulation within Rs 18,500-15,500, representing a sideways trend.
The stock is sustaining below its 20, 50 100 and 200- day SMAs, which support bearish sentiment.
The stock is in a strong up trend across all the time frames as it sustains in higher tops and bottoms formation.
On the weekly time frame, the stock is scaling upwards within the “up-sloping channel” indicating an up trend.
The weekly Band-Bollinger Buy signal indicates increased momentum.