Nifty daily chart has formed “Spinning Top” an uncertain candlestick pattern at higher level, suggests some amount of supply at higher level. Although Nifty mange to close above previous day’s high and broken psychological 5300 level. Daily momentum indicators are in over bought zone which indicates profit booking on higher level cannot be ruled out, technically buying on dips strategy will work well as we are in intermediate term up trend.
Tata Chemical (319.80)Stock is making higher highs and higher lows from last three trading days and yesterday stock has formed “Long White Candle” a bullish candlestick pattern with decent volume breakout, moreover Stock has also given mid January supply line breakout. Daily momentum indicators are also featuring in bullish zone. Looking at all above technical parameters traders with moderate risk appetite can consider Buy above Rs.321 with tight Stop Loss of Rs.316 for a Target of Rs.336.
Stock was in down trend after making high of 371 in late February, Yesterday stock has formed “Hammer” or “White power Line” a bullish candlestick pattern which technically suggest initial stage of trend reversal. Daily momentum indicators after appearing in over sold zone given positive cross over to signal line, although volume is not supportive at this time. Short term moving averages are also showing upward move. Looking at all above implication traders with moderate risk appetite can consider Buy above Rs.321 with tight Stop Loss of Rs.313 for a Target of Rs.338.