Market Outlook 4 May 2010 and Calls

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Nifty (5222.75) - Black Opening Marubozu

Nifty daily chart has formed “Black Opening Marubozu” a bearish candlestick pattern and forming good strong support near 50 days EMA since last four trading days and now which is currently placed at 5200 levels. Daily as well as weekly momentum indicators are showing weakness in chart. More over yesterday was first day where Nifty experienced “Dead Cross Over” on moving average front. Strong resistance placed in the range of 5290-5310 levels. Over all scenario remains cautious and capital preservation is more advisable. 


IVRCL Infra (175.90)
Stock has formed “Long black Candle” a bearish candlestick pattern on daily chart and broken three month old upward slopping trend line support. 3 days EMA has given negative crossover to 8 days EMA, more over stock has given close below 20 days EMA. Daily momentum indicators RSI and Stochastic have given negative crossover to signal line. Looking at all above technical parameters traders with moderate risk appetite can consider Sell below Rs.175.10 with tight stop loss of Rs.179 for a Target of Rs.164.

Essar Oil (142.10)
Stock has formed “Long White Candle” after two “DOJI” days with strong volume breakout on daily chart. Daily momentum indicators have given positive crossover to signal line. Weekly RSI has also given positive cross over to signal line. More over stock has given good close above 20 days EMA. Looking at all above technical parameters traders with moderate risk appetite can consider Buy above Rs.142.70 with tight stop loss of Rs.140.50 for a Target of Rs.148-150.




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