Market Outlook 19 February 2010 and Calls

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Nifty (4888)
Nifty daily chart has formed “Small Black Candle” suggests uncertainty in the market. Strong support placed at 20 days Simple Moving average which is at 4866 levels. From here on we are expecting market to give more weight age to macroeconomic news rather than technical alone, as we have immediate near term trigger is Union Budget on 26 February 2010. Technically Nifty need strong and sustainable close above 4900 for up move. Any portfolio buying should be avoided till budget.

NTPC (205)
Stock is in Accumulation zone and found strong bottom at 200 level. Yesterday stock has formed “Bullish Engulf “ bullish candlestick pattern and reliability of pattern is high. Daily RSI is forming higher highs and heading towards bullish zone and Stochastic is already in strong buy mode, more over from last two days stock is experiencing strong volume, depicts buying seen at down level. Looking at all above we are considering this stock is one the safe bet for short term trader. Buy above Rs. 205 with tight stoop loss of Rs.200 (closing basis) for a Target of Rs.215-218.   

Bombay Dyeing (556)
Stock was in consolidation zone between 498 to 542 since last few trading days and that range was below 20 days SMA, Yesterday Stock has made “Long White candle” bullish candlestick pattern with strong volume breakout more over stock has also given close above 20 days SMA.  Daily RSI and Stochastic are already in strong buy mode. Looking at all above technical parameters trader with moderate risk appetite can consider Buy above Rs.556 with tight stop loss of Rs.544 (closing basis) for a Target o Rs.574. 



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