Technical Calls 21 December 2009

Mphasis (726)

Stock has formed “Three Outside up” bullish candlestick pattern and broken consolidation phase with strong volume breakout on Friday. Daily RSI, Stochastic and MACDh are indicating strong up move in coming days. More over on positive side, on Friday stock has given close above 50 % Retracement level of previous dynamic corrective wave. Stock has found good support at 5 DEMA which is placed at 709 level. Looking at all above positive evidence trader can Buy above Rs.726 with stop loss of Rs.709 on closing basis for a target of Rs.765.

Crompton (406)

Stock has formed “Dark Cloud Cover” bearish candlestick pattern on daily chart. Friday stock has broken and closed below important support level of Rs.412. Daily Momentum indicators are suggesting weakness in coming days. Weekly chart has also formed “High wave Pattern” suggests the longer the upper shadow and the higher the price level, the more bearish implication. Looking at all above observation trader can Sell below Rs.403 with tight stop loss of Rs.413 on closing basis for a Target of Rs.385-Rs.380.