INDUSIND BANK

This is weekly chart of INDUSIND Bank. This stock has a tendency of consolidating in a range then enter into another range. This is very good stock for positional trading. The predictable movement of stock allows one to go long on the lower side of range and short at the top of range. The stoploss can be placed on closing basis. On intraday basis the stock has a tendency to break range. The stock moved in the range of 210-290 for almost 1.5 years from Aug 2010 till Feb 2012. After which for 8 months it traded in the range of 290-345. In last week of Nov 2013 till last week it was trading between 400-440 range. On the back of good result it has made new life time high and broke out of range of last 5 months.

nifty monthly

I am showing you nifty monthly chart. It can be seen that the up move from the lows of oct 2008 has been moving in the perfect channel. The lower end of the channel (line chart) was tested recently in the month of april 2013. The bounce has been spectacular. Nifty has moved 200 point or 4% in the last week. The move has been swift taking the bears by surprise. The pattern indicates that the up move has primary strong resistance around the levels 5870-5900. The channels upper trend line is around the levels of previous highs of 6330.