Nifty (5093.50) - “High Wave Pattern”
Last week Nifty has formed “High Wave Pattern” on weekly chart which suggests there is supply at higher level but we would like to point out here is that last week trend was backed by weak global cues so we refer last week all candles were news driven candles rather than technical.
On daily chart last week nifty consist of two down days and three up days candles but closed near lower band of high and low, moreover Nifty has also broken important crucial support of 5122 level which is 62% retracement level of previous dynamic impulse wave. Daily momentum indicators have also given negative crossover to signal line. Over all capital preservation is more advisable as market is more news driven at this point.
Next week Important support range is between 5037 – 4952 levels, 200 days SMA placed at 4981, and important Resistance placed in between 5134 – 5156.
Sesa Goa (374.20) – 100 days SMA
Sell below Rs.373 Sl Rs.387 Tgt Rs.345
Stock is trading below its 100 Days SMA since last ten trading days and this incidence occurred almost after more than one year this imbibes hidden bear grip on the stock. Short term moving averages are showing down ward movement with increasing gap, Daily momentum indicators are also featuring in bearish mode and More on bear side, On Weekly chart stock is trading below its 38% retracement level. Looking at all above technical evidence traders with moderate risk appetite can consider Sell below Rs.373 with tight stop loss of Rs.387 for a Target of Rs.345.
Bank of Baroda (686.50) - “Rising Wedge Pattern”
Sell below Rs.683 Sl Rs.692 Tgt Rs.667-663
After making High of Rs.720.90 in early May, stock was trading in consolidation zone. On Friday stock has formed “Rising Wedge Pattern” a bearish pattern with “Long Black Candle” on breakdown day in daily chart. On moving average front 3 days EMA has given negative crossover to 8 days EMA. Daily momentum indicators are also featuring in bearish zone. Moreover weekly RSI has also given negative crossover to signal in over bought zone. Looking at all above technical parameters trader with moderate risk appetite can consider Sell below Rs.683 with tight SL of Rs.692 for a Target of Rs. 667-663.