Technical Calls 7 December 2009

IOC (310)

Stock is forming “Rounding bottom” formation with good 6 month old trend line support and on Friday stock has given decent volume breakout with “Long white candle” bullish candle stick pattern. Moreover stock has also broken two month old supply line. In addition after 28 October first time stock has given positive close above 34 DEMA which suggest uptrend is likely to continue. Daily RSI, Stochastic and MACDh is also giving buy signal. Looking at all above evidence trader can Buy stock above Rs.311 with stop loss of Rs.303 for a Target of Rs. 324.

Tata Tea (921)

Stock has formed “Long white candle” bullish candle stick pattern with supply line break out. Stock has also given strong volume breakout on Friday. In Addition 3DEMA has given positive cross over to 8 DEMA. Weekly RSI also showing strength for Bull. Daily RSI and MACDh is giving buy signal. Looking at all above statement trader can Buy above Rs.924 with stop loss of Rs.915 for a target o Rs.950.