Market Outlook 5 March 2010 and Calls

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Nifty (5080)
As described in yesterday’s news letter we saw profit booking at higher level after appearance of “Three White Soldier”. On moving average front 20 days EMA is reducing gap between 50 days EMA which is a good sign for bulls. Daily Momentum indicators are featuring in bullish zone but Stochastic is hovering over bought zone which may invites selling pressure at higher level. Over all technical scenario is bullish so buying on dips strategy works well.


HDIL (316.15)
Stock is forming “Rounding Bottom “formation a bullish pattern and yesterday stock has broken 20 days EMA with decent volume on chart. Daily momentum indicators are featuring bullish zone and weekly RSI is reducing gap between signal line suggest up move in stock. Looking at all above technical parameters trader with moderate risk appetite can consider Buy above Rs.318 with tight stop loss of Rs.311 for a Target of Rs.332. 

IB Realest (172.80)
Stock is making higher highs and higher lows from last three days and yesterday stock has broken 20 days EMA with decent volume on chart. Daily momentum indicators are featuring in bullish zone and weekly RSI has given positive cut to signal line. On candlestick front on weekly chart , previous week candle was “Long Legged DOJI’ and current up move in stock is forming “long white candle” which suggests bottom formation in stock. Looking at all above technical evidence trader with moderate risk appetite can consider Buy above Rs.174 with tight stop loss of Rs.169.50 for a Target of Rs.187.

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