NIFTY Fut:: 4840 Resistance for the Rally……
* We may observe from attached daily chart of this oil exploration counter that prices are continuously attempting to scale up from the consolidation pattern.
* The area of 307-08 (upper consolidation area and 200day EMA) has been
acting very crucial, as prices have staged upside breakout of it for second
* Prices have even surpassed the hurdle of middle bollinger band in previous session.
* By maintaining dominance for few sessions, positive DMI line has widened afresh yesterday, by forming pivot high above 20 levels.
* ADX has placed around 12 levels and is attempting to turn up from there.
* Prices making repeated attempt to stage upside breakout of the area of 307- 08, is a sign of loss of strength of abovementioned resistance. Eventually that leads to decisive move above that area.
* Moving below from the middle bollinger band prices clears it and sustains above mid band, has potential target of reaching the upper band.
* Fresh widening by positive DMI line and also forming pivot highs is an
indication of strengthening of positive swing.
* Prices of this automobile counter have witnessed sharp profit booking after forming an all time high around 875 in 28.10.11.
* This down leg has reversed from the low of 682-23.11.11, and pullback was not a convincing one.
* Though prices have opened above the strong resistance of 200day EMA
around 735, being not able to stay at higher levels in last session, prices
closed below that area.
* Daily RSI has traveled up from the oversold region of 30 levels and now
facing stiff resistance around crucial 40 levels.
* After a recent downtrend, if prices not able to give sizable pullback rally with positive range is considered to be a weak pullback and that is going to falter soon.
* The area of 200day EMA acts as a significant long-term support/resistance area. Prices’ declining afresh by hitting the same in last session, reflects some more weakness is on cards.
* Moving above from the bearish region of below 30 levels, if RSI unable to advance above the crucial 40 levels, it’s a sign of weakening of momentum and that normally leads to sharp decline in prices.
* Forming a minor high around 902-04.11.11, prices of this oil counter has
declined in the month of Nov’11 and then shifted recently in to minor
consolidation around the low of 750.
* Though prices have broken put on upside in last session by forming a huge
gap up, but they have not able to sustain above the hurdle of 799 (2×1
ascending angle line (pink line) from the low of 714-26.08.11).
* They have formed a ‘doji’ pattern in last session around the abovementioned
hurdle of ascending angle line.
* The area of ascending angle line is significant, as it has produced very good rallies in past from the support of it. Non-sustaining of prices above it, might pull them much lower.
* Formation of ‘doji’ pattern around the above said hurdles is a sign of lack of strength in bull’s participation. The gain that has happened in last session might end up in loss.
* After moving up with huge gap up, if prices unable to sustain at higher
ground, it is likely to retrace down and fill the gap in short period.
BHEL witnessed fresh addition of short positions in the last
session. The stock added 24.6% in open interest with a decrease in cost
of carry from -4% to -6.1%. Short positions can be assumed in the stock
below 275 for targets of 265 and 255 levels with a stop loss placed at 281
Bajaj Auto witnessed fresh addition of long positions in the
last session. The stock added 12.26% in open interest with an increase in
cost of carry from 0.08% to 9.33%. Long positions can be assumed in the
stock above 1700 for targets of 1750 and 1780 levels with a stop loss
placed at 1670 on a closing basis.
Infy: Infy witnessed fresh addition of long positions in the last session. The
stock added 8.49% in open interest with an increase in cost of carry from
5.6% to 8.86%. Long positions can be assumed in the stock at 2645-2650
for targets of 2710 and 2750 levels with a stop loss placed at 2620 levels