Nifty (5124.90) - Hammer
Yesterday Nifty saw gap down opening but in intraday, chart has formed higher highs and higher lows which suggests some sign of strength in market at down level. Daily chart has formed ”Hammer” a bullish candlestick pattern and reliability of this pattern is high, if next day close is above high of hammer. On other side daily momentum indicators are showing some sign of weakness. Over all scenario slightly favor bulls and trader should avoid fresh shorts as long as Nifty is above 5100 level on closing basis, Next immediate resistance placed in the range of 5168-5200 levels.
After making high of 495 in early April stock was in continuous down trend and yesterday stock has formed “Piercing Pattern” a bullish candlestick pattern with rising volume and reliability of pattern is high. Daily momentum indicators are showing strength after appearing in over sold region. Looking at all above technical evidence traders with moderate risk appetite can consider Buy above Rs.400 with tight stop loss of Rs.390 for a Target of Rs.435.
Kirloskar Oil Eng (175.20)
On daily chart Stock has formed two bullish pattern, on candlestick front “Three Outside Up” a bullish candlestick pattern and on western technique stock has formed “Pennant” a bullish continuation pattern. Daily momentum indicators are featuring in bullish zone and favor up move on chart. 3 days EMA has given positive cross over to 8 days EMA. Looking at all above technical evidence traders with moderate risk appetite can consider Buy above Rs.176 with tight stop loss of Rs.171 for a Target of Rs.188.