Technical Analysis | 01 September 2010

Technical Corner
Nifty 5402

Source: Metastock

Yesterday, after a weak session for the initial half of trading, Nifty rebounded strongly and closed above 5400 level. As immense buying interest emerged at the key support level of 5350. Technically, Nifty managed to close above our level of 5385, so the uptrend is still intact. On the daily chart, some technical indicators are still negative but two factors are pointing to a pullback to the level of 5450-5470. Firstly, daily stochastic oscillator is giving a buy signal and secondly, Nifty managed to close above 50 DMA. Moreover, on the hourly chart RSI (14) a positive divergence has developed. But we reiterate that closing below the crucial level of 5385 will lead to a change in medium term trend from bullish to bearish. .

Level1 SUPPORT RESISTANCE 5400 5425

Level 2 5385 5450

Level3 5350 5470

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Technical Corner
01 September 2010

Intraday calls

MCDOWELL-N
Strategy Buy Price range 1420-1432 Stop loss 1410 Target 1460

1432
Time Frame Intraday

Source: Metastock

McDowell has given a volume based breakout after consolidating in the region of 1383-1398. Moreover, the counter has managed to close above the 20DMA and a positive divergence has developed in daily Stochastic oscillator. TATA MOTORS
Strategy Buy Price range 1006-1010 Stop loss 995 Target 1028

1010
Time Frame Intraday

Source: Metastock

Tata motors has managed to close above 9DMA after taking support on the 20DMA. Again, the upmove in the counter was accompanied by strong volumes indicating further upside is left.
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Technical Corner
01 September 2010

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