Nifty daily chart has formed “White Opening Marubozu” a bullish candlestick pattern and broken major resistance zone of 5310-5330 level. Detailed study of intraday chart suggests that market is in over bought zone and major resistance placed at 5380, crossing this, nifty may invite bull to take charge up to 5420 levels and strong support placed at 5340 level, below which, profit booking may take place. Over all technical scenario support buying on dips strategy.
Neyveli lignite (147.90)
After touching high of 165 in early march 2010 Stock was making lower lows and lower highs, yesterday stock has formed “Bullish Engulf” a bullish candlestick pattern on daily chart and reliability of this pattern is high. Daily momentum indicators have given positive cross over to signal line after floating in over sold zone. Short term moving averages showing sign of strength for up move. Looking at all above technical evidence traders with moderate risk appetite can consider Buy above Rs.149 with tight stop loss of Rs.146 for a Target of Rs.155.
After making “Bearish Engulf“ on 8 March 2010 stock was in continuous downtrend and finally stock has found bottom on 23 March with “DOJI” and since then stock was in accumulation zone with small bodies on each day. Yesterday stock has formed “Long White candle” a bullish candlestick pattern with strong volume breakout on daily chart. 3 days EMA has given positive crossover to 8 days EMA, more over stock has given close above 20 days EMA. Looking at all above technical evidence traders with moderate risk appetite can consider Buy above Rs.302 with tight stop loss of Rs.296 for a Target of Rs.319.