Chart Check from Emkay Global for Thursday, February 23: Nifty Futures, Tata Steel

We have compiled technical recommendations from Dharmesh Patel, Technical Analyst, Emkay Global Financial Services for today.

1) Nifty Future: Sell

Sell: The index has given a breakdown from an upward sloping trendline, with the formation of a key reversal bar at the upper Bollinger band.

The breakdown is far more convincing as it is supported by the negative crossover of daily MACD, which took place after few days of negative divergence. Sell with a stop loss of 5675 for the target of 5377.

2) Tata Steel: Sell

Sell: The stock has signaled an intermediate term down move due to the formation of Bearish Engulfing pattern at the upper Bollinger band.

The pattern is far more convincing as it is supported by the negative crossover of daily MACD, which took place after few days of negative divergence. Sell with a stop loss of 497 for the target of 425.