Market Outlook 11 May 2010 and Calls

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Nifty (5193.60) - White Opening Marubozu


Yesterday Nifty after kissing 50 % retracement level of previous dynamic impulse wave, Nifty has formed “White Opening Marubozu” which suggests strong buying seen since opening. Daily momentum indicators have given positive cross over to their signal line and now are on the verge of positive territory. Other way round all this happened due to global level good macro news and sustainability at this level is still a billion dollar question. Traders should use this rally to exit from existing longs. Major support placed in the range of 5148-5122 levels and major resistance placed in the range of 5239-5250 levels.   

ACC (891.75) - Buy abv 892 Sl 881 Tgt 916


After making high of 986.95 in early April ,stock was in continuous down trend and yesterday stock has formed “Bullish Abandoned Baby” a bullish candlestick pattern with satisfactory volume on daily chart. Further, short term moving averages started moving upward and Momentum indicators like RSI , Stoch, and MACDh has also given positive cross over to signal line. Looking at all above technical parameters trader with moderate risk appetite can consider Buy above Rs.892 with tight stop loss of Rs.881 (closing basis) for a Target of Rs.916.

SCI (166.80) - Buy abv 168 Sl 164 Tgt 176


On daily chart stock has given “symmetrical triangle “breakout and formed “white opening Marubozu” with rising volume. 3 days EMA has given positive crossover to 8 days EMA and daily momentum indicators are making higher highs, suggests strong up move is on the card. Looking at all above technical parameters traders with moderate risk appetite can consider Buy above Rs.168 with tight stop loss of Rs.164 (closing basis) for a Target of Rs.176.

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