Market Outlook 16 March 2010 and Calls

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Nifty (5128.90)
Nifty daily chart has formed “Long Legged Doji” an uncertain candlestick pattern but it is at higher level and here significance is more for weakness. From last 8 trading days Nifty is trading in the range bound movement with uncertain candles. As said in last note 5050 and 5310 will work as a strong short term support and resistance level respectively in near term. Scenario slightly favors bear for today. Over all remain cautious and capital preservation is more advisable.     

CESC (411.75)
After making low of 368 in late February Stock is in uptrend and Yesterday stock has broken 50 % retracement level of previous corrective wave with “Long White candle” and strong volume breakout on daily chart, combination suggest momentum is likely to continue. Daily Momentum indicators are featuring in bullish zone. Weekly RSI also featuring in bullish zone and making higher highs and higher lows pattern. Looking at all above technical parameters trader with moderate risk appetite can consider Buy in range of 409-412 with tight stop loss of Rs.403 for a Target of Rs.428.  

M&M (1105)
After a withdraw of recent high of Rs.1155 today stock has formed a “Black Opening Marabozu” a candlestick reversal pattern. Also today stock is well  closed below its 5DEMA a near term moving average market indicator  which imbibe negativity in the stock for near term. Also Momentum indicators like RSI, MACDh and Stochastic has also given negative crossover to signal line. The vital trend direction indicator ADX is at 27 Which will supports the trend in near future. Looking at all implications Trader with moderate risk appetite can Sell below Rs.1101 with a stop loss of Rs 1113 and Target of Rs.1077.

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