Nifty (5136.15) - “Long Black Candle”
Looking at yesterday’s move it seems market is in still jittery mode and on daily chart Nifty has formed “Long Black Candle” a bearish candlestick pattern. Important point to note here is that nifty has sustained crucial support of 5122 level on closing basis. Strong bull rally is possible only above 5250 levels and strong support placed at 4952 level. Traders should avoid spike on either side and still capital preservation is advisable.
Petronet (84.35) – Buy above Rs.84.70 Sl 82 Tgt Rs.90
Stock has formed “Long White Candle” with strong volume and closed on the verge of one month old downward slopping trend line. Daily momentum indicators have given positive crossover to signal line and 3 days EMA has given positive crossover to 8 days EMA more stock has given good close above 20 days EMA. Weekly RSI has also given positive crossover to signal line. Looking at all above technical parameters traders with moderate risk appetite can consider Buy above Rs.84.70 with stop loss of Rs.82 for a Target of Rs.90.
COLPAL (736.10) - Sell belwo Rs.735 Sl 743 Tgt Rs.718
After making high of 770 in early May, stock was in down trend. Yesterday stock has formed “double Bottom” at 735 if this level break down then we may see some more selling in this counter. Short term moving averages showing downward movement and increasing gap on down side; more over stock has given close below 20 days EMA. Daily momentum indicators are also suggesting sell at this point of time. Looking at all above technical parameters traders with moderate risk appetite can consider Sell below Rs.735 with stop loss of Rs.743 for a Target of Rs.718.