Technical Calls 31 December 2009

Tata Chemical (333)

After making double bottom at 310 level stock is marching northward and yesterday stock has broken and closed above previous swing high of 330 level with “Long White Candle” bullish candlestick pattern on daily chart. Daily Momentum indicators are exhibiting positive divergence. Looking at all above observation trader can buy at current level with tight stop loss of Rs.326 on closing basis for a Target of Rs.350.

BEML (1107)

After successful formation of “Three White Soldier” bullish pattern on 29 December but went in over bought zone, yesterday Stock has formed “Dark Cloud cover” bearish candlestick pattern on daily chart. Daily RSI has given negative cross over in over bought zone. After looking at all above, weakness is likely to persist in coming days also. Trader with moderate risk appetite can sell below Rs.1104 with stop loss Rs.1122 on closing basis for a Target of Rs.1065.

Crompton Greaves (415)

Stock has formed “Bearish Engulf” bearish candlestick pattern on daily chart. Daily RSI and MACDh is showing weakness. Weekly RSI has also given negative cross over in over bought zone. Stock has minor support at 412 level once it breaks then bear will have strong grip. Looking at all above evidence trader with moderate risk appetite can sell between 415-412 with tight stop loss of Rs.422 on closing basis for a Target of Rs.395.