On daily chart Nifty has formed ‘Pennant” bullish continuation pattern and on candlestick front daily chart has formed “Long White Candle” with combination of high wave pattern suggests still mixed sentiments. Long white body suggests bullishness where as high wave pattern suggest selling pressure on higher level. Daily RSI entered in bullish zone and given strong breakout to 20 days EMA, suggest short term uptrend in nifty. On Weekly chart Nifty has formed “Three White soldier” bullish candlestick pattern and reliability of the pattern is high. Weekly RSI also entered in bullish zone. Potential target of ‘Pennants” is at 5250-5300 but it is too early unless and until Nifty closes above 5050 level. Overall technical picture is favoring bulls.
Sesa Goa (400)
After making low of 332 on 29 January 2010, stock has shown upward movement and side by side Daily RSI also making higher highs. On 26 February 2010 Stock has formed “bullish Price channel” pattern on daily chart with strong volume breakout. Daily Momentum indicators are also featuring in bullish zone. Weekly chart is making higher highs higher lows pattern and Weekly RSI is reducing gap between signal line. Looking at all above technical parameters trader with high risk appetite can consider Buy above Rs.400 with tight stop loss of Rs.390 for a Target of Rs.424 in seven trading days.
Canara Bank (393)
Stock was consolidating in the range of 373 to 393 range since last 15 trading session, on 26 February stock has formed “Long White Candle” bullish candlestick pattern on daily chart with strong volume breakout. On moving average front stock has given strong close above 20 days EMA and 3 days EMA has given positive cut to 8 days EMA. On oscillator front Daily RSI entered in bullish zone and MACD has given buy signal. Looking at all above technical evidence trader with moderate risk appetite can consider Buy above Rs.393 with stop loss of Rs.386 for a Target of Rs.405-Rs.410 in seven trading days.