We had a mix trading this week, Nifty failed to cross 5400 which has became strong resistance now. Open Interest in Nifty is continuously falling from last four days, probably more traders are taking exit from Nifty and sitting on cash and observing the complete situation, we are experiencing lot of volatility in Global Markets as well. Once the picture is clear, Open Interest in Nifty or we can say trader’s interest in stock markets will come back again, till then no fresh position should not be taken in Nifty.
On stock front, very interesting thing is happening in SBI; we observed Downward-sloping reverse Head & Shoulders pattern is being formed.
In Fig. 1, it is clearly shown that volumes are low near top comparatively at bottom; we guess some kind of long term buying has happened in month of Sept-Oct 2011 when SBIN made bottom. Its Downward-sloping reverse Head & Shoulders pattern is forming now, but buying in this counter should come after some confirmation (breaking of neckline).
So what kind of confirmation we need for it???
RSI is near 55-57 and ADX is decreasing, overall SBIN is not in momentum, but we think when it cross 2000 level, more buying force will come and this will take SBIN in uptrend momentum.
Our call for SBIN is to take Long position above 1990 which is almost its last peak with strict stop loss below 1940, this stock can rally 2160-2200 in near term. Some profit can be booked in this range and remaining can be hold till 2500 level.
Other stock pick is Century Textile
One can buy this counter above 341 with strict Stop Loss around 326-328, Target for Century Textile is 360-370 in near term.
Why we are bullish in this stock???
It is crossing its 200 EMA and crossed 200 DMA, and its momentum is very high, ADX is increasing with price and RSI is at 65, also Accumulation & Distribution indicator is at its six months high.
See syllabus for Technical analysis training in Mumbai,India.
Please read our disclaimers before investing http://tradingkamai.blogspot.in/p/disclaimer.html
On stock front, very interesting thing is happening in SBI; we observed Downward-sloping reverse Head & Shoulders pattern is being formed.
Fig: - 1 SBI Day chart
In Fig. 1, it is clearly shown that volumes are low near top comparatively at bottom; we guess some kind of long term buying has happened in month of Sept-Oct 2011 when SBIN made bottom. Its Downward-sloping reverse Head & Shoulders pattern is forming now, but buying in this counter should come after some confirmation (breaking of neckline).
So what kind of confirmation we need for it???
RSI is near 55-57 and ADX is decreasing, overall SBIN is not in momentum, but we think when it cross 2000 level, more buying force will come and this will take SBIN in uptrend momentum.
Our call for SBIN is to take Long position above 1990 which is almost its last peak with strict stop loss below 1940, this stock can rally 2160-2200 in near term. Some profit can be booked in this range and remaining can be hold till 2500 level.
Other stock pick is Century Textile
One can buy this counter above 341 with strict Stop Loss around 326-328, Target for Century Textile is 360-370 in near term.
Why we are bullish in this stock???
It is crossing its 200 EMA and crossed 200 DMA, and its momentum is very high, ADX is increasing with price and RSI is at 65, also Accumulation & Distribution indicator is at its six months high.
See syllabus for Technical analysis training in Mumbai,India.
Please read our disclaimers before investing http://tradingkamai.blogspot.in/p/disclaimer.html
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