Market Outlook 29 March 2010 and Calls

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Nifty (5282)
Last week Nifty opened on “Black Opening Marubozu” a bearish candlestick pattern but since then market recovered in three days with higher highs higher lows and broken previous swing high of 5269 level. Daily momentum indicators are featuring in overbought zone. On weekly chart Nifty has formed “High Wave” pattern which favors uncertainty in market and if Nifty breaks down 5260 level on closing basis then we may see some sign of bear attack in market. Immediate Strong resistance placed at 5315 level and two closes above this level will invite bull to take charge and possible target will be 5375 level. Over all buying on dips strategy works well as long as Nifty is trading above 5145 level.


Dabur (165.20)
Stock was in down trend from early march after reaching high of 175 level , on 25 March stock has formed “Hammer” and on 26 march Stock has formed“Long White Candle” this both favor bulls in coming trading days. Daily RSI and Stochastic has given positive crossover to signal line and is on the verge of bullish zone. Short term moving averages showing upward move in stock. Looking at all above implication traders with moderate risk appetite can consider Buy above Rs.166 with tight stop loss of Rs.162 for a Target of Rs.174.


EKC (122.45)
Stock was making lower lows and lower highs with narrow trading range from early March , on 26 March stock has formed “Long White candle” a bullish candlestick pattern with strong volume breakout on daily chart, suggests up move is likely to continue. 3 days EMA has given positive cross over to 8 days EMA, moreover stock has given strong close above 20 days EMA. Weekly RSI and volume also favors bulls in coming days. . Looking at all above implication traders with moderate risk appetite can consider Buy above Rs.123.50 with tight stop loss of Rs.119 for a Target of Rs.131.


Cairn India (295.05)
Stock was in uptrend from mid March and on 26 March stock has formed “Dark cloud Cover” a bearish candlestick pattern and reliability of pattern is high, as this occurred almost in over bought zone. Daily momentum indicators and short term moving averages are sending tired out signal at higher level. MACDh is also generating sell signal. Looking at all above implication traders with moderate risk appetite can consider Sell at current level with tight stop loss of Rs.303 for a Target of Rs.279. 

1 comments:

prasan said...

your views and charts are very helpful to me to learn technical analysis. Thankyou so much.

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