In the previous session, the market experienced a calm weekly expiry. Market remained in a sideways zone throughout the day. Technically, the Nifty index formed a Bullish Engulfing candle on the chart and closed with a net gain of 84.40 points. The price action will remain volatile; hence a stock specific approach is advisable for the next trading day.

 Look at the below research report of ‘Stocks to Buy for –Friday, July 22, 2022’ before the market opens.

Intellect Design Arena Ltd.

On the daily chart, we can see that INTELLECT stock prices have formed a ‘Cup and Handle pattern’ and are currently placed above the Neckline resistance of the handle. It is a continuation pattern which is formed when there is a prior uptrend, followed by a consolidation zone. As per pattern theory, 70 points movement on upside can be expected in coming days.

We have plotted Parabolic SAR on the chart. The Parabolic dots are moving below the prices which indicates that stock is now in uptrend. This indicator is most useful in terms of Entry and Exit levels in any stocks for trading purposes. The Relative Strength Index (RSI) on the daily chart is 59.95.

As the chart looks attractive, one can initiate buy and accumulate this stock above 706. We can expect it to reach a target of 779 levels based on our analysis. This outlook is valid as long as we do not see any closing below Parabolic SAR support.

Check More Analysis on INTELLECT at: Intellect Design Arena Ltd