Technical Outlook & Trading Strategy:-
The ICICI BANK has seen a sharp fall from a high of Rs 1279 on 5th Nov 2010 to a low of Rs 939.8 on 9th Feb 2011.
Then the stock has retraced more than 50% of the previous fall to a high of Rs 1139 on 15th April 2011.On the weekly chart the stock has formed a Hammer Candlestick Pattern.
We would like to point out that a Hammer candlestick formation is a significant bullish reversal candlestick pattern suggesting more upside for the stock.
The MACD indicator on the daily chart is also in a bullish zone. We recommend traders to buy 50% now and again in the range of Rs 1055 – Rs 1062 levels with a stop loss placed below Rs 1036.4 levels for targets of Rs 1100 – Rs 1125 levels.
Monday, July 25, 2011
Reliance Infrastructure Ltd. CMP—Rs 580.40
Technical Outlook & Trading Strategy:-
The price of Reliance Infra has been trading within broad range of Rs 515.45 to Rs 586.4 levels after it had corrected from a high of Rs 710 levels as on 1st April, 2011.
The key observation to be made is that the price of Reliance Infra 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 597 levels. Upside targets of Rs 627 / Rs 655 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 Reliance Infra has also closed above its key moving average and the MACD indicator is also trading in bullish mode.
We recommend traders to buy 50% now and again in the range of Rs 572 – Rs 575 levels with a stop loss placed below Rs 566.4 levels for targets of Rs 596 – Rs 610 levels.
The price of Reliance Infra has been trading within broad range of Rs 515.45 to Rs 586.4 levels after it had corrected from a high of Rs 710 levels as on 1st April, 2011.
The key observation to be made is that the price of Reliance Infra 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 597 levels. Upside targets of Rs 627 / Rs 655 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 Reliance Infra has also closed above its key moving average and the MACD indicator is also trading in bullish mode.
We recommend traders to buy 50% now and again in the range of Rs 572 – Rs 575 levels with a stop loss placed below Rs 566.4 levels for targets of Rs 596 – Rs 610 levels.
Friday, July 22, 2011
TRADING RECOMMENDATIONS Development Credit Bank Ltd.
Development Credit Bank Ltd. CMP—Rs 58.40
Technical Outlook & Trading Strategy:-
The share price of Development Credit Bank has registered a breakdown from its cluster of moving averages. The momentum indicators remain in negative territory indicating weakness in the stock price. We expect the stock price to decline towards the level of Rs 56- Rs 55 in the upcoming session.
Short positions are recommended at current levels with a stop placed above Rs 60.40 levels.
Technical Outlook & Trading Strategy:-
The share price of Development Credit Bank has registered a breakdown from its cluster of moving averages. The momentum indicators remain in negative territory indicating weakness in the stock price. We expect the stock price to decline towards the level of Rs 56- Rs 55 in the upcoming session.
Short positions are recommended at current levels with a stop placed above Rs 60.40 levels.
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