Technical Calls 23 December 2009

GMDC (144)

Stock has broken extended Consolidation phase and finally formed “Long White Candle” bullish candlestick pattern with strong volume breakout on daily chart. 3 days EMA has given positive crossover to 8 days EMA. Daily Momentum indicators has given positive divergence. More over stock has outperform market in spite of uncertainty on bourses. Looking at all above observation trader can buy above Rs.145 with stop loss of Rs.141 on closing basis for a Target of Rs. 154.

Sesa Goa (380)

After making high of 399 on 8 December 2009 stock is continuously making lower lows on daily chart. yesterday stock has formed “Long White Candle” bullish candlestick pattern with strong volume breakout on daily chart. 3 days EMA has given positive crossover to 8 days EMA. Daily RSI,Stochastic and MACDh are giving positive divergence. Looking at all above statement trader with moderate risk appetite can Buy above Rs.382 with tight Stop Loss of Rs.373 for a Target of Rs.400.