Novartis India continued its good run as the stock jumped 8.3% on heavy volume. The stock has seen increased buying interest in August and has advanced about 40% from its pivot price of Rs 682.
I would not recommend the use of trend lines except to track long-term trends over a period of months. Shorter-term trend lines can be very misleading. Often, by the time the shorter-term trend line (weeks or less) is established, it becomes obvious, and fails shortly thereafter. Moving averages are a better guide.
Despite weakness in the benchmark indices, Bharat Rasayan hit the upper circuit with a 5% gain today. However, the stock is currently trading 17% above from its pivot price of Rs 6,599.00. The stock broke out of a nine-week long cup-with-handle base on July 9, 2018, but it was an eight-stage base. If you purchase a late-stage pattern (after third or fourth); its risk increases.
Radico Khaitan got locked in upper circuit at 5% and managed to break out of a 13-week long cup with handle base. It is currently trading at 1% above its pivot price of Rs 454.40. As per the latest release by NSE, the stock continue to remain in the ASM. Despite break out, the earnings and revenue trajectory is not in favour of our investment thesis.