Market Outlook 29 October 2012
In a second consecutive week Nifty has maintained its 20 days EMA level. On weekly chart again Nifty has formed “DOJI” an uncertain candlestick pattern; above all combination evoking consolidation at higher levels. Daily as well as weekly momentum indicators are generating weak signal on chart. Nifty weekly support placed at 5560 levels and weekly resistance placed at 5750 levels. As long as Nifty is hovering below weekly resistance of 5750 ; we are not expecting big move on chart. Nifty intraday support placed at 5645 – 5631 – 5610 levels and resistance placed at 5680 – 5696 – 5710 levels.
Last Friday stock has witnessed buying later part of the day with strong volume and finally ended with “Long White Candle” a bulish candlestick pattern on daily chart. 3 days EMA has given positive cut to 8 days EMA and more over stock has also given close above 20 days EMA levels. 14 days RSI has also entered in bullish zone. Important to note here is that on hourly chart ADX is placed above 20 and which indicates strength in current trend.
Buy above 320 sl 315 tgt 332
Dena Bank Future 107
On daily chart stock has formed “Rising Wedge” a bearish chart pattern at higher levels. More on bearish front last Friday stock has formed “Long Black Candle” and given close in 20 days EMA vicinage. 3 days EMA has given negative crossover to 8 days EMA. 14 days RSI is also generating sell signal on chart.
Short below 106 sl 109 tgt 100
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