Nifty daily chart has formed “White Spinning Top” this suggests uncertainty hovering in the market. Intraday chart study tells that nifty has given sharp fall and formed “Double Bottom” at 4857 level and bounce back to 4870 level. Stock specific activity is likely to continue as we are in budget week. On downs side 4675 is a strong support and on upside 4918 is an important level to watch. Simple word be cautious and capital preservation is advisable.
Stock has formed “Bullish Engulf” bullish candlestick pattern on daily chart with strong volume break out. On moving average front stock has given strong breakout to 20 days EMA and entered in short term uptrend. Daily RSI is featuring in bullish zone. All other momentum indicators are also giving buy signal. Looking at all above technical evidence trader can consider Buy above Rs.483 with tight stop loss of Rs.472 for a Target of Rs.505.
ICICI BANK (848)
Stock has formed a “Bullish Engulf” a major candlestick pattern with a upright volume in daily charts. Also Stock is well trading above its 20DEMA a short term moving average market indicator.RSI had made higher high and featuring on the road to northward. Also other indicators like MACdh and Stochastic has also shown positive in stock which gives potency to the stock for near future. Looking at all above implications trader can Buy above Rs.852 with a stop loss of Rs.842 and Target of Rs.870.