Yesterday Nifty open on soft note and traded throughout the day with “high wave” candlestick pattern in intraday chart with low volume which clearly suggests uncertainty before big event of Union Budget. Daily chart has formed “DOJI” pattern which also favors uncertainty in market. Again On downs side 4675 is a strong support and on upside 4918 is an important level to watch.
Stock is making higher highs on daily chart as well as on weekly chart. Yesterday Stock has formed “Inverse Head and Shoulder “a bullish pattern with strong volume breakout on daily chart and Neckline placed at 766 level, more over stock has given close above 50% retracement level of previous impulse wave. Daily RSI and Stochastic is featuring in bullish zone with strong up move indication. Looking at all above technical evidence trader with moderate risk appetite can consider Buy above Rs.768 with tight stop loss of Rs.752 for a Target of Rs.808 in 5 Trading Days.
After making high of Rs.187 on 17 Feb 2010, stock is making lower lows and trading well below 20 days EMA. Yesterday Stock has formed “White Opening Marubozu” a bullish candlestick pattern with relatively decent volume on daily chart. Stock has given trend reversal signal on 23 Feb 2010 where it has formed “DOJI” after severe downfall. Daily RSI and Stochastic has given bullish cross over to signal line. Looking at all above technical parameters trader with moderate risk appetite can consider Buy above Rs.162 with tight stop loss of Rs.157 for a Target of Rs.173 in 5 Trading Days.