Nifty daily chart has formed “small black candle” suggests uncertainty in the market. Market is clearly facing lack of volume. As said yesterday Macroeconomic factor will affect most, near term trigger is Union Budget on 26 February 2010. Short term major support placed at 4700 level and major Resistance placed at 4940 breakout /down will give us continuation of trend.
Intraday Support:- 4785-4765-4745
Intraday Resistance:- 4817-4837-4855
Stock has formed a “Long White Candle”with a incessantly rising in volume from last three days. Also 3DEMA has given positive crossover to 8 DEMA. Also a vital trend direction indicator ADX is at 24 which shows upbeat strength to current trend. Also Momentum indicator RSI has given positive crossover after coming from oversold arena. Looking at above implications stock can be bought above RS.167 with a Stop loss of Rs. 163.5 and Target of Rs.175.
After a fresh high of Rs.221 today stock had formed “Bearish Engulf” which swallow negativity in stock for the near term. Also stock has closed below its 5DEMA a short term moving average indicator. Also momentum Oscillators Stochastic has given negative crossover after coming from overbought province. Other Western indicators like RSI and MACDh has also given negative ambiance in the stock. Looking at above implications stock can be sold Below RS.210 with a Stop loss of Rs. 215 and Target of Rs.196.