Nifty (5090.85) - Hammer Again
Yesterday Nifty has again formed “Hammer” and most important point to note here is that it managed to close above previous hammer’s low and this has intact implication of this pattern, although daily momentum indicators are still showing sign of weakness in chart. Immediate support placed at 50% retracement level of previous dynamic impulse wave which is at 5037 level and immediate resistance placed in the range of 5122-5145 levels.
Stock has formed “White Opening Marubozu” with strong volume breakout on daily chart. 3 days EMA has given Positive crossover to 8 Days EMA, more over daily momentum indicators like RSI, Stochastic and MACDh entered in bullish zone. Weekly RSI also showing strength with upward movement and with rising volume. Looking at all above technical parameters traders with moderate risk appetite can consider Buy above Rs.461 Stop loss of Rs. 452 for a Target of Rs.486.
Mcleode Russel (217.55)
After making high of Rs.286 in March 2010, Stock was in continuous down trend and yesterday stock has formed “Morning Doji Star” a bullish candlestick pattern with rising volume on daily chart. Daily Momentum indicators shown positive crossover to signal line after appearing in over sold region. Looking at all above technical parameters traders with moderate risk appetite can consider Buy above Rs.219 Stop loss of Rs.211 for a Target of Rs.236.