Yesterday nifty traded in good 83 points range and ended with decent gain. On daily candle nifty has formed relatively higher upper shadow compare to lower shadow, suggests some supply at higher level. Important point to note here is that nifty entered first time in overbought zone after 1 October 2009. Important resistance placed at 5310 level, which will work as good supply area and little correction from there on will treat as healthy correction. Strong Near term support shifted up to 5100 level.
On daily chart Stock has formed “Inverted Head and Shoulder” a bullish pattern, more over yesterday stock has given strong volume breakout with “Long White Candle“ a bullish candlestick pattern. All daily momentum indicators are featuring in bullish zone and showing strength for near term, especially MACDh has given strong buy signal. Looking at all above parameters trader with moderate risk appetite can consider Buy above Rs.159 with tight Stop loss of Rs.155 (closing basis) for a Target of Rs.172.
Stock is making higher highs and higher lows from last two trading days and yesterday stock has given strong volume breakout. 3 days EMA has given positive cross over to 8 days EMA. Important swing high placed at 125 level , crossing this level stock will invite bull to take charge. Daily momentum indicators are featuring in bullish zone. Looking at all above parameters trader with moderate risk appetite can consider Buy above Rs.125 with tight Stop loss of Rs.121.50 for a Target of Rs.132.
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