In the previous session, the market extended its gain in yet another day. The nifty index opened on a positive note and made a high near 17941 level.The overall market was in a range bond. Technically, The Index formed a Doji candle at a higher level on the chart which indicates a flat or minor negative opening for the next day. Hence, a stock specific approach is advisable for the next trading session.

Look at the below research report of ‘Stocks to Buy for – Monday, October 11, 2021’ before the market opens.

BSE Ltd

On the daily chart, we can see that prices have formed a ‘V- Bottom pattern’. In the previous session, stock retested the higher level and closed above the neckline of the pattern with a bullish candle. The best way to trade in the V-Bottom pattern is wait for the price to break the neckline of the pattern and then enter a position once price retests the neckline level. The Relative Strength Index (RSI) on the daily chart is 68; which indicates bullishness.

The momentum on upside remains strong. On the above chart, we have applied Fibonacci projection, which is used to determine the price action, support and resistance levels. As per extension levels stock can take support near 1280-1290 levels. one can use these support levels as a buying opportunity at a lower price to move higher towards 1436 levels. On downside stop loss can be placed near 1207 levels.

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