Technical Calls 4 December 2009

Tata Motors (707)

After completing “Three White soldier” Bullish candle stick pattern on 2 December, stock slipped in to overbought zone and yesterday almost formed “ Bearish Engulf” candle stick pattern which suggest selling pressure likely to continue. Daily RSI and Stochastic has negative crossover in over bought zone. Looking at all above evidence trader can Sell below Rs.703 with stop loss of Rs.710 for a target of Rs.689.

ICSA (176.60)

After making double bottom in late November stock is continuously forming higher lows and higher tops on daily chart. Yesterday stock has given decent volume breakout and PSAR has also given buy signal in daily chart. Daily Momentum indicators like RSI, Stochastic and MACDh are also giving buy signal. Looking at all above statement trader can Buy above Rs.178 with tight stop loss of Rs.174 for a target of Rs.191.