Nifty daily chart has formed “Black Opening Marubozu” reliability of pattern is low and depicts neutral to negative bias. Weekly chart has formed “Long Legged Doji” suggests uncertainty in market. Last week was second week where market close above its open price and candles closing on 12 February 2010 has formed “Piercing Line” bullish candlestick pattern and reliability is the pattern is high. Low of this pattern is at 4675 which will work as strong support for the market and as long as this level sustains there should not be panic in market. Next important resistance to watch out is 4918 level, two closes above this invite bull to take charge.
After making “Dark cloud cover” bearish candlestick pattern on week ended 15 January 2010, stock was in continuous down trend and last week stock has formed “Morning star” bullish candlestick pattern with decent volume on weekly chart, reliability of the pattern is high. On more positive side Weekly RSI has given positive cross over to signal line and daily RSI featuring in bullish zone. on moving average front stock has given strong close above 20 days EMA suggest short term trend turned up in the stock. Looking at all above technical evidence trader with moderate risk appetite can consider Buy above Rs.710 with stop loss of Rs.675 for a Target of Rs.775-800 in 4 weeks time frame.
On weekly chart stock has formed “symmetrical triangle” which is a continuation pattern and it has given bullish breakout with decent volume on weekly chart. Weekly RSi has given positive cross over to signal line. More over stock has given two consecutive close above 20 days EMA suggests continuation of short term uptrend. Dailly momentum indicators are featuring in bullish zone. Looking at all above technical parameters trader with moderate risk appetite can consider Buy above Rs.322 with tight stop loss of Rs.305 for a Target of Rs.373 in 4 week time frame.