Day Trading Calls with Market Review for 22 Mar 2010

March 22, 2010 by

S&P sovereign outlook revision for India helped Nifty close in green for yet another day and post a positive weekly close for the sixth week in a row. The aggressive target of the inverted head and shoulders pattern has been achieved and so is the five-wave rise on the hourly charts, as Nifty just missed 5300 by few odd points. The daily momentum indicator continues to be in a buy mode, which has not given any sign of reversal in the short term. However, the hourly momentum indicator is giving a divergence—which is worrisome. The volumes in the entire run-up was less compared to the one during the fall from 5310 to 4675, which indicates that the short-term rally is loosing steam. Going ahead, it would be important to watch whether the Nifty manages to surpass 5310, as in January the index made a bearish engulfing pattern, or forms another Doji candlestick pattern on the quarterly charts. So, the days ahead are going to be very crucial as it will decide a medium term trend too, which as of now has turned in the favour of bulls, as the weekly KST is in a buy mode. We continue to maintain our bias up in the short term.

Nifty Close 5263

Nifty Support 5237/5204/5176

Nifty Resistance 5270/5300/5324

  1. Buy Unitech 73-73.50 SL 71.80 TGT 75-76.50
  2. Buy TCS Above 833 SL 818 TGT 850
  3. Buy JP Associates Above 156 SL 153 TGT 160
  4. Buy TATA Motors Above 795 SL 784 TGT 810

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