Nifty (5018.05) -
lower lows and lower highs
Last week we saw 294 points move between high and low and it was most volatile week after 22 January 2010. On candlestick front weekly chart has formed “Black Opening Marubozu” which imbibes weakness in coming week also. Weekly RSI and MACDh have generated sell signal.
On daily chart front, Nifty has made lower lows and lower highs and last whole week ended in a red, which now also suggests weakness at this point of time, but here important point to note is that, RSI almost hovering in over sold zone where as Stochastic is already in over sold zone, this two indicator may provide some pull back rally on downfall or other way we can say that not much downfall remain as long as this indicators are in over sold region.
Major support placed at 38% retracement level of previous impulse wave which is now placed at 4952 level and 200 days EMA placed at 4961 level. Strong resistance placed in between 5122 – 5150 levels.
PFC (265.10) -
Long Black Candle
Stock has broken One year old trend line support adjoining from the lows of 20 March 2009. On Friday Stock has formed “Long Black Candle” a bearish candlestick pattern. Momentum indicators have given negative crossover to signal line where as on moving average front 3 days EMA has given negative crossover 8 days EMA, even stock price close below 20 days EMA. Looking at all above technical parameters traders with moderate risk appetite can consider sell below Rs.263 with Tight Stop Loss of Rs.272 for a Target of Rs.245-239.
On Friday stock has broken important support zone of Rs.912-Rs.915 levels and formed “Black Opening Marubozu” a bearish candlestick pattern. Short term moving averages started showing weakness and 3 days EMA has given negative crossover 8 days EMA more over stock closed on the verge of 20 days EMA. Daily momentum indicators also generating sell signal. Looking at all above technical parameters traders with moderate risk appetite can consider sell below Rs.905 with Tight Stop Loss of Rs.921 for a Target of Rs872.