The Indian stock market has recently shown a significant bullish trend, with the Nifty50 index moving from 22,000 to 23,200 levels. While this upward momentum offers exciting opportunities, many investors remain cautious, fearful, or confused about entering the market.
The fear of potential market reversals often deters investors from making moves, even when the broader trend seems promising. However, an effective way to find stocks is by using tools like the Heikin Ashi noiseless chart to help define the trend, making decision-making much more straightforward.
While observing a single time frame on a chart can give you some insight into market behaviour, it may not be sufficient to form a reliable strategy. A more effective approach is to use multi-time frame analysis. This technique looks at charts from different time frames—such as monthly, weekly, and daily—to analyse the broader trend, the medium-term outlook, and the short-term momentum. By combining these different perspectives, investors can get a comprehensive view of the market’s direction, enabling them to make better decisions.
A bullish Heikin Ashi candle is formed when the open and low prices are the same. This indicates strong buying pressure and a steady upward movement in the asset’s price. When these bullish candles appear on multiple time frames, they signal that the stock is in a strong uptrend with momentum backing it.
In our analysis of the Nifty200, we have identified three stocks that are currently forming bullish Heikin Ashi candles across the monthly, weekly, and daily charts, suggesting that these stocks are potentially positioned for continued growth:
As the market continues its bullish trajectory, investors can look to stocks like Hindalco, JSW Steel, and Kotak Mahindra Bank, which currently exhibit bullish Heikin Ashi candles across multiple time frames.
Readers can spot a stock by utilising the Heikin Ashi chart in conjunction with multi-timeframe analysis. Even in times of market reversal, these technical tools help reduce uncertainty and potentially guide investors toward stocks that are likely to continue performing well in the near future.
Disclaimer
Note: We have relied on data from throughout this article. Only in cases where the data was unavailable have we used an alternate but widely used and accepted source of information.
The purpose of this article is only to share interesting charts, data points and thought-provoking opinions. It is NOT a recommendation. If you wish to consider an investment, you are strongly advised to consult your advisor. This article is strictly for educative purposes only.
Brijesh Bhatia has over 18 years of experience in India’s financial markets as a trader and technical analyst. He has worked with UTI, Asit C Mehta, and Edelweiss Securities. Presently, he is an analyst at Definedge.
Disclosure: The writer and his dependents do not hold the Stocks discussed in this article. However, clients of Definedge may or may not own these securities.
The website managers, its employee(s), and contributors/writers/authors of articles have or may have an outstanding buy or sell position or holding in the securities, options on securities or other related investments of issuers and/or companies discussed therein. The articles’ content and data interpretation are solely the personal views of the contributors/ writers/authors. Investors must make their own investment decisions based on their specific objectives, resources and only after consulting such independent advisors as may be necessary.