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Monday, July 11, 2011

TRADING RECOMMENDATIONS Hindustan Zinc Ltd.

Hindustan Zinc Ltd.CMP— Rs 131.10
Technical Outlook & Trading Strategy:-

The price of Hindustan Zinc remained under tremendous selling pressure throughout the previous session of trade.But,the key observation to be made is that the price of Hindustan Zinc appears to be forming a head and shoulder pattern on its daily charts. The Head and shoulder price pattern is an extremely bearish price pattern and has negative implications on the future price movements of a stock. The price of Hindustan Zinc is also trading below its key moving averages and the momentum indicators are firmly placed in sell mode.

We recommend traders to sell 50% now and again in the range of Rs 133 – Rs
134 levels with a stop loss placed above `135.6 levels for targets of Rs 126 – Rs 122 levels, expected to be achieved in coming few Sessions.

TRADING RECOMMENDATIONS Hero Honda Motors Ltd.

Hero Honda Motors Ltd.CMP - Rs 1902.20
Technical Outlook & Trading Strategy:-

The price of Hero Honda has been trading within broad range of Rs 1708 to Rs 1920 levels after it rallied from a low of Rs 1375 levels as on 22th Feb,2011.The key observation to be made is that the price of Hero Honda has taken shape of an Inverted head and shoulder price pattern on the daily charts.The Neckline resistance for the said pattern is placed at the Rs 1925 levels.Upside targets of Rs 2025 / Rs 2100 levels can be seen in this counter once the price breaks above the neckline resistance level mentioned above.Some of the other positive technical factors are that the price of Hero Honda has also closed above its key moving averages cluster and the MACD indicator is also trading in bullish mode.

We recommend traders to buy on a break above Rs 1925 levels and again on dips to Rs 1890—Rs 1910 levels for the near term upside targets of Rs 2000/ Rs 2070.A stop loss of Rs 1856.4 levels should be maintained on all long positions.