As anticipated about the implication of “Doji”, market reacted exactly in same manner and closed below important support level of 5310. Nifty daily chart has formed “Long Black Candle” a bearish candlestick pattern after two consecutive doji days. Daily momentum indicators have given negative crossover to signal line after experiencing over bought zone in previous days. Over all scenario turned weak as long as nifty is trading below 5345 level.
Yesterday Stock has broken mid January downward slopping trend line with strong volume and formed “Long White Candle” a bullish candlestick pattern on daily chart. Daily momentum indicators hovering in bullish zone especially RSI has given positive cut to signal line. Short term moving averages showing upward movement in stock. Looking at all above technical parameters traders with moderate risk appetite can consider Buy above Rs.183.40 with tight stop loss of Rs.180 for a Target of Rs.190.
Stock was in consolidation zone from past few trading days and yesterday stock has formed “Black Opening Marubozu” a bearish candlestick pattern on daily chart. 3 days EMA has given negative crossover to 8 days EMA more over stock has given closed below 20 days EMA which imbibes bearish outcome in coming trading days. Daily momentum indicators have also generating sell signal. Looking at all above technical parameters traders with moderate risk appetite can consider Sell below Rs.464 with tight stop loss of Rs.472 for a Target of Rs.448.