I think KOTAKBANK has topped in a medium term. There are many things aligning up and all say that KOTAKBANK's top is in.
The RSI has divergence, There is a long term trendline acting as a resistance. Also in the shorter term there is resistance as well.
The chart is very clear and speaks for itself.
Stop loss: 1746
DATE: DECEMBER 22, 2019
KotakBank has a supply zone range from 1537.40-1543.55. A strong push towards this zone should cause profit booking at the zone.
Look for entry at 1537.20 with SL 1543.90 and TP at 1522.60
Risk Reward set at 2:1
Rounding Top pattern confirmed in KotakBank. Neck level 1467.5 is broken decisively and the stock can be considered as Short candidate. Do note that volume has been diminishing as the pattern was formed adding further confirmation of a temporary weakness. Target for short selling comes at 1394 according to the pattern, whereas 1400 as target could be safer.
Kotakbank is going to give a big deeper correction towards 950 levels. I would keep a stoploss at 1360 and short Kotakbank at current levels or if it goes little higher.
There is a possibility of KotakBank forming a Head & shoulders pattern with "equal low" in formation and then "lower high" and "lower low" are expected which should complete H & S pattern.
It is possible because the weakness is evident in KotakBank as it looks like "big players / smart money" selling off - distribution, and retailers "Weak hands" buying. Rsi...