As said in previous edition about weakness in Nifty and exactly yesterday we saw supply at higher level. Nifty daily chart has formed “Black Opening Marubozu” a bearish candlestick pattern; suggest weakness is likely to continue in coming trading days. Daily RSI and Stochastic has given negative crossover to signal line from over bought zone. MACDh is giving sell signal. Weekly RSI has also started showing some sign of weakness after sending tired out signal in last week. Short term trend reversal resistance placed at 5310 and support placed at 5070 levels, in between range provide uncertainty over trend.
Stock was in uptrend from the low of Rs.198 in early February 2010 and yesterday Stock has formed “Evening Doji Star” a bearish candlestick pattern on daily chart, theoretically reliability of pattern is high. Short term moving averages showing negative strength on daily chart. Daily momentum indicators have given negative crossover to signal line. Weekly RSI is on the verge negative crossover , depicts negative strength in stock. Looking at all above technical parameters traders with moderate risk appetite can consider Sell below Rs.238 with tight stop loss of Rs.242 for a Target of Rs.228.
Punj Lloyd (176.65)
From early February stock has formed multiple bottom at Rs.170 and shown bounce back there on. Yesterday stock has formed “Long White Candle “a bullish candlestick pattern with strong volume breakout on daily chart. Daily RSI and Stochastic has given positive crossover to signal. Weekly RSI also sensing strength in stock. Looking at all above implications traders with moderate risk appetite can consider Buy above Rs.178 with tight stop loss of Rs.172 for a Target of Rs.189.