Market Outlook 19 May 2010 and Calls


Nifty (5066.20) - Long Legged Doji

Nifty daily chart has formed “Long Legged Doji” an indecisive candlestick pattern but this appeared after “Hammer” so this will favor bull as long as hammer low is sustain, which is placed at 4966 level. Daily momentum indicators are generating mix signals. Intraday support placed at same level of yesterday which is in between 5037-5006 levels and Resistance placed in between 5095-5122 levels. Buying on dips strategy works well in this type of market as Nifty is trading around 50 % Retracement level of previous dynamic impulse wave.

Dishman Pharma (220.60) - Long White Candle

Yesterday stock has formed “Long White Candle” a bullish candlestick pattern with decent volume breakout on daily chart. 3 days EMA has given positive crossover to 8 days EMA. Moreover stock has given good close above 20 days EMA. Daily momentum indicators are featuring in bullish zone. Looking at all above technical parameters traders with moderate risk appetite can consider Buy above Rs.222 with tight stop loss of Rs.217 for a Target of Rs.234.

Ambuja Cement (107.85) - Meeting Line + Long White candle

After making “Meeting Line “ a bullish candlestick pattern on 17 May 2010 stock has given more bullish confirmation by making “Long White candle” on yesterday. Stock was in down trend after making high of 125 in late April 2010 and from last three days stock has given evidence of trend reversal. Daily RSI after appearing in over sold zone is on the verge of positive crossover to signal line. Looking at all above technical parameters traders with moderate risk appetite can consider Buy above Rs.108.50 with tight stop loss of Rs.105.50 for a Target of Rs.114.50.

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Anonymous said...

ok good view

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