Market Outlook 18 May 2010 and Calls


Nifty (5059.90) – Hammer

Yesterday Nifty has formed “Hammer” a Bullish reversal pattern on daily chart, this pattern consist small body and shadow of the same must be around 2.5 to 3 time of real body, this imbibes buying or short covering at lower level, moreover nifty has kissed and hold 200 days SMA and 50% retracement level of previous dynamic impulse wave, which will now work as strong support area on closing basis. Daily momentum indicators are generating mix signal. Nifty intraday support placed in the range of 5037-5006 levels and Intraday Resistance placed 5094-5115 level.

Mcleod Russel (216.60) - Bullish Engulf 

After making high of 293 in late march 2010, Stock was in down trend. Yesterday stock has made “Bullish Engulf “a bullish reversal pattern with strong volume breakout more over stock has given close on the verge of one and half month old downward sloping trend line. Daily RSI and MACDh have given buy signal. Short term moving averages are also showing upward movement in stock. Looking at all above evidence traders with moderate risk appetite can consider Buy above Rs.219 with tight stop loss of Rs.208 for a Target of Rs.237 

Areva T & D (256.80) - Piercing Pattern

After making high of Rs.319 in early April 2010, Stock was in down trend. Yesterday stock has formed “Piercing Pattern” bullish candlestick pattern, with decent volume breakout in daily chart. 3 days EMA has given positive crossover to 8DEMA. Momentum indicators have come out from oversold region and given positive crossover to signal line. Looking at all above evidence trader can consider Buy above Rs.258.50 with tight stop loss of Rs.250 for a Target of Rs.275.   



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