As said yesterday Nifty is showing some sign of halt at higher level and waiting for fresh cues for further movement. From last three days nifty is trading in narrow range which suggests uncertainty at higher level. Important point to note here is that 20 Days EMA is on the verge of positive cross over to 50 days EMA. Near term scenario appears to be bullish and still buying on dips strategy works well. Strong support placed in the range of 4993-4945 levels. Major Resistance placed at 5138-5160 levels.
After a draw back of recent low of Rs. 172, today stock has formed a “Big White Candle” with a volume upturn in daily charts. Also stock is well trading above its 20 DEMA a near term moving average market indicator. Also Daily RSI is featuring in Bullish Zone and weekly RSI is on verge of positive crossover. Other daily Momentum indicators like MACDh and Stochastic have also given strong buy signal. A vital trend direction indicator ADX is at 26 which supports positivity in current trend. Looking at all above evidence stock can be bought above Rs.186 with a stop loss of Rs 182 and a target of Rs.194.
Stock was trading in broad range of 770-830 since late January 2010 and from last four trading days stock is making higher highs and higher lows pattern. Yesterday stock has formed “Long White candle” bullish candlestick pattern with decent volume on daily chart. Daily and weekly momentum indicators are featuring in bullish zone. Looking at all above technical evidence momentum trader with moderate risk appetite can consider Buy above 846 with tight stop loss of Rs.833 for a Target of Rs.882.