Market Outlook 27 May 2010 and Calls

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Nifty (4917.40)


Yesterday Nifty has formed “White Opening Marubozu” a bullish reversal pattern; technically it may be a first day of reversal in trend.  Although reliability of this pattern is low as this is a single candlestick pattern but it should not avoid as this occurred after good amount of correction. 200 days SMA placed at 4998 levels and now this will work as good resistance zone in market and one should not forget trend is still bearish as long as Nifty is below 200 days SMA.  Daily momentum indicators are showing some strength after experiencing over sold zone.  

Punjlloyd (131.20)


Stock has fallen more than 30 % in last two months and from last four trading days stock has found bottom at 126 – 127 levels and daily momentum indicators are also hovering in over sold zone so this two combination favor that bottom of the stock is formed. On candlestick front yesterdays stock has formed “White Candle” with decent volume breakout, more over daily momentum indicators have also given positive crossover to signal line. Looking at all above technical parameters traders with moderate risk appetite can consider Buy at current level with tight stop loss of Rs.126 on closing basis for a Target of Rs.144.

TCS (738)  


After making high of 845 in mid march stock was in continuous down trend, Yesterday stock has formed “Long White Candle” a bullish candlestick pattern with decent volume breakout on chart. Daily momentum indicators have also given positive crossover to signal line and entered in neutral zone. Short term moving are also showing sign of strength. Looking at all above technical parameters traders with moderate risk appetite can consider Buy at current level with tight stop loss of Rs.724 for a Target of Rs.772.    


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