Technical Calls 8 December 2009

Renuka (223.45)

Stock has given one month trend line break down and formed “Long Red Candle” bearish candlestick pattern on daily chart. Weekly RSI is also making lower highs which suggest weakness. 3DEMA has given negative crossover to 8 DEMA from top, moreover Daily RSI, Stochastic and MACDh are also giving sell signal. Trader with moderate risk appetite can Sell below Rs.221 with Stop loss of Rs.226 for a Target of Rs. 211.

HCL Tech (346)

Stock has given trend line breakout with “Long Green Candle” bullish candlestick pattern. Volume is also continuously increasing since last few days. Daily RSI, Stochastic and MACDh is also giving buy signal and weekly RSI is also showing strength. Trader with high risk appetite can Buy above Rs.346 with tight stop loss of Rs.341 for a target of Rs. 356.