In the previous session, The Nifty index opened on a positive note but soon slipped into a negative territory. The index witnessed selling pressure throughout the day and closed with a net loss of 204.95 points. Technically the Nifty index formed a Bearish Engulfing candle on the chart which indicates more weakness in the market. The overall market looks to be volatile hence a cautious approach is advisable for the next trading day.

Look at the below research report of ‘Stocks to Buy for – Monday, December 06, 2021’ before the market opens.

Voltas Ltd

NSE :VOLTAS   BSE :500575  Sector : Consumer Durables

We have plotted a weekly chart of VOLTAS Ltd. Stock prices formed a Diamond pattern on the chart. We have seen a pattern failure in the previous week as price action moves in the opposite direction than expected. Firstly, the stock price managed to break the pattern towards downside. Later we saw a ‘Bullish Engulfing’ candle pattern on the chart. Stock closed with a bullish candle near 1246 levels with net gain 7%, which indicates that the bearish trend didn’t continue for long.

We have shown an ADX indicator which indicates a potential in stock. As seen on the chart, +DI is above –DI and ADX value is 33 which indicates that there is more room available on upside for the stock. 20 EMA support is acting very well for the stock.

Based on the current price action clues, VOLTAS looks to be at a crucial juncture but with bullish up move expecting. Positions can be created only above 1282 levels, which can take prices towards 1375 levels. This outlook is valid until we don’t see any closing below 1130 level.

Check More Analysis on VOLTAS at: Voltas Ltd