Last Week Nifty remains in consolidation zone after making “Three White Soldier” in preceding week. Important point to note on weekly chart is that open and low was same, which suggests sentiments in near term looks well. Detailed study of Weekly chart suggests that Nifty is trading in a horizontal price channel Pattern, upper zone ends at 5310 level, crossing which provide real Bull Run in the market. Daily RSI is suggesting strength on chart where as MACDh is showing some sign of weakness, over all technical scenario favors bull as long as nifty is trading above 5050 level.
Hind Zinc (1250)
On Daily chart stock has formed “Three Outside Up” bullish candlestick pattern and western technique side stock has formed “Cup and Handle” a bullish pattern, combination of this two brings strong upside move in the stock. Also On Friday stock has given strong volume breakout, Daily Momentum indicators are featuring in bullish zone. Looking at all above technical parameters trader with moderate risk appetite can consider Buy above Rs.1250 with tight Stop loss of Rs.1222 for a Target of Rs.1325.
Chennai Petro (254)
Stock was consolidating in the range of 238-249 from late February, on Friday stock has formed “Long White Candle” bullish candlestick pattern with strong volume, which suggest up move is likely to sustain. Daily RSI, Stochastic has given positive cross over to signal line and MACDh has given strong buy signal. Weekly RSI also featuring in bullish zone. Looking at all above technical parameters trader with moderate risk appetite can consider Buy above Rs256. with tight stop loss of Rs.249 for a Target of Rs.270.