Yesterday Nifty has made “Small White Candle” and shown some sign of tiredness at higher level. detailed study of intraday chart pattern also suggests uncertainty over bulls and bears. As said yesterday market is hovering in over bought and technically we may see some supply at higher level. Near term strong support placed at 5110 and Resistance placed at 5310 levels.
Tata Communication (295.10)
Stock was in continuous downtrend from mid January and formed bottom at 270 zones in mid march, from last four days stock was in accumulation zone and yesterday stock has formed “Long White Candle” bullish candlestick pattern with strong volume breakout on daily chart. 3 days EMA has given positive cut to 8 days EMA, more over stock has given breakout to 20 days EMA after long period. Looking at all above parameters traders with moderate risk appetite can consider Buy above Rs.297 with tight stop loss of Rs.290 for a Target of Rs.312.
Stock was making higher highs and higher lows from last seven days and yesterday stock has made “Bearish Engulf” bearish candlestick pattern on daily chart. Daily Momentum indicators are showing sign of weakness after reaching in over bought zone. Detailed study of intraday chart pattern also witness supply at higher level. Looking at all above parameters traders with moderate risk appetite can consider Sell below Rs.821 with tight stop loss of Rs.830 for a Target of Rs.802.