Market Outlook 8 March 2010

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Nifty (5088.70)
Nifty daily chart has formed indecisive pattern from last two days but we would like to call it,  a halt before any big up move, as market intermediate trend is up.  Nifty daily chart has already given confirmation to “Bullish Head and Shoulder Pattern” and potential target for this pattern arrives at 5160-5225.Daily Momentum indicators are featuring in bullish zone.  Weekly Chart is forming higher highs and higher lows pattern and RSI has given positive cross over to signal line. Over all technical scenario is positive and buying on dips works well in this type of market. Next Week Strong support placed in the range of 4993-4945 levels. Major Resistance placed at 5138-5160 levels.

Prakash Industries (224.80)
On daily chart Stock has formed “Ascending Triangle” a bullish continuation pattern, Friday stock has formed “Long White candles” and closed on breakout level with strong volume. Daily Momentum indicators are featuring bullish zone especially MACDh has given strong buy signal. Weekly RSI has given positive crossover to signal line and throughout the week volume was decent. Looking at all above technical evidence and Ascending triangle breakout suggests trader with moderate risk appetite can consider Buy above Rs.227 with tight stop loss of Rs.219 for a Target Rs.263.

IGL(223.40)
On daily chart stock has formed “Long White Candle” and given breakout from box range with strong volume on chart. Weekly RSI is reducing gap between signal line and is on the verge of positive cross over. Stock is well trading above 20DEMA a near term moving average market indicator. Daily momentum indicators like RSI, Stochastic and MACDh also featuring in bullish zone. Looking at all above technical evidence trader with moderate risk appetite can consider Buy above Rs.225 with tight stop loss of Rs.219 for a Target Rs.237-243.  

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