In the previous session, the market saw corrections after two days of consolidation.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 143 points. As per candle technique, the index formed a Bearish Engulfing Pattern on the chart which indicates more weakness in the market. Hence a cautious approach is advisable for the next trading day.

Look at the below research report of ‘Stocks to Buy for – Tuesday, December 14, 2021’ before the market opens.

Polycab India Ltd

We have posted a daily chart of POLYCAB. We can see that the price has formed a ‘Double Bottom Pattern’. It is a continuation chart pattern, in which we can see that upward price action after the formation of the two similar bottoms. Stock formed a Bullish candle on the chart and closed with a net gain of 2.98%. In addition, The Relative Strength Index (RSI) on the daily chart is 65 and it is moving above previous high.

The momentum on upside remains strong for Polycab India Ltd. On the above chart, we have applied Fibonacci projection, which is used to determine the price action, support and resistance levels. We can expect it to reach a target of 2800 levels which is 161.8% of Fibonacci levels. Add more on dips around 2400 levels. On downside stop loss can be placed below 2290 levels.

Check More Analysis on POLYCAB at: Polycab India Ltd