Price Action based Analysis on TCS, TATASTEEL and HINDUNILEVER

12-Nov-2021 EoD Analysis

In our endeavor through Discover Stock, we have been providing you information about stocks which are actually being traded at the bottom ranges. Our recommended stocks were either just broken out of the previous resistance or in the verge of a break out near the bottom zone.

We keep suggesting the readers to keep watch on these recommended stocks and take position only when it is at low risk zone for a big reward.

Since last one year or so, we have seen almost all the blue-chip stocks have already recovered from their respective Covid Pandemic crash lows and they not only have broken their Pre-Covid highs but also have been trading in their all time high regions.

In such scenarios, no blue chip stocks were discovered at low price. However, based on Pure Price action and Technical Analysis, we have fished out 3 NIFTY 50 Stocks, which are available at low price.

Although these stocks are currently trading at almost near their double from the last year price, still the said stocks were considered here as they are currently trading at their support regions.

The support and resistance concept has been discussed in detail, in a video for which the link has been provided below. Readers are requested to go through the video to get an understanding on support and resistance concept in stock market charts.

Support & Resistance Concept

Technique of drawing of Support and Resistance Lines is also mentioned in the said video. Normally people draw support lines by connecting the low points in a bar chart and resistances are generally drawn on high points. However, when we plan for a long term investment, these lines should be drawn slightly in a different way. Instead of using the Candle Charts, it should be drawn on Line Charts for more accuracy. More importantly, the lines should be drawn on daily line charts connecting the prices. After drawing the lines, charts can be converted to Candle Stick charts, where exact support and resistance levels can be marked.

The stock which are traded at support may be short listed for buying. Always there should be more than one reason when we are thinking to go long on any stock. Convergence of more than one support or resistance line are more powerful and effective than only a single support or resistance line. Further, in case the chart forms any of the bullish patterns, then also it can be considered in the watch list.

In our analysis, we have found out three such blue-chip stocks which are having multiple confirmations at their support levels. The name of the stocks which are being discussed as below:

1. TCS