Weekly Chart View
Last week Nifty has first time broken Nine week winning streak and this was the first time after September 2006 where Nifty experienced 10 week winning streak. Weekly RSI and Stochastic has given negative crossover to signal line and Weekly MACDh is also generating tired signal. Strong support found at 5 week EMA at 5258 level which Nifty is maintaining from last 7 weeks. Next major support placed at 5188 level as long as this level sustain no major bear grip will be possible. Strong resistance zone will be in the range of 5290 to 5310 levels, if this level nifty surpasses then we may see some bounce back in market till 5400, which is a major resistance at this point of time of current rally. Trader should remain cautious and should avoid taking huge position as immediate triggered in local market is of monetary policy announcement on 20 April 2010.
Candle Pattern:- Long Black Candle- Bearish candlestick pattern
Daily Chart View
On daily chart Nifty has formed “DOJI” pattern and closed on two and half month old upward sloping trend line support. Daily RSI, Stochastic and MACDh showing weakness in the market but important point to note here is that Stochastic is hovering in over sold zone, which interprets that market will not fall sharply or it may find some halt or pause.
Candle Pattern:- DOJI- Uncertain candlestick pattern
Stock was trading in box range since mid march 2010, on Friday stock has formed “Bearish Engulf” a bearish candlestick pattern and reliability of pattern is high. 3 days EMA has given negative crossover to 8 days EMA. Daily momentum indicators have also given negative cross over to signal line. Looking at all above technical parameters traders with moderate risk appetite can consider Sell below Rs.146.50 with strict stop loss of Rs.152 for a Target of Rs.139.
After making high of Rs.188 in mid January 2010, stock was in continuous downtrend. On Friday stock has formed “Bullish Engulf” a bullish candlestick pattern and reliability of pattern is high. 3 days EMA has given positive crossover to 8 days EMA. Daily momentum indicators have also given positive cross over to signal line. More over weekly RSI is on the verge of positive crossover. Looking at all above technical parameters traders with moderate risk appetite can consider Buy above Rs.144.50 with strict stop loss of Rs.140.50 for a Target of Rs.153.