TRADING RECOMMENDATIONS HCL Technologies Ltd.

Technical Outlook & Trading Strategy:-

The share price movement of HCL Tech from 17 Aug 2011 till date appears to be forming a symmetrical triangle pattern.

It should be noted that symmetrical triangle patterns signify accumulation and suggest price advances once the breakout is recorded (at Rs 414 for the said pattern).

A break above the price level of Rs 414 should start an upside movement with possible price targets of Rs 440/ Rs 455 in a short period of time.

The momentum indicators on the daily chart are also in a bullish zone suggesting more upside in the stock.

We recommend traders to buy 50% now and again in the range of Rs 402 – Rs 406 levels with a stop loss placed below Rs 394.4 levels for targets of Rs 430 – Rs 440 levels.

TRADING RECOMMENDATIONS GAIL

Technical Outlook & Trading Strategy:-

The price of GAIL Ltd has been consolidating within broad ranges of Rs 403 to Rs 476.5 levels.

But, the key observation to be made is that the price of GAIL Ltd has formed a head and shoulder pattern on the Daily charts.

A breakdown from the said pattern would be confirmed when the price breaks below the neckline level of Rs 409 levels.

The momentum indicator is also in sell mode. The prices of GAIL Ltd will face severe selling pressure once it starts trading below the neckline level of Rs 409 levels.

We recommend traders to sell below Rs 409 with a stop loss placed above Rs 422.1 levels for targets of Rs 392 / Rs 380 levels, expected to be achieved in coming few Sessions.