Click on the charts below to see a bigger picture.
As discussed yesterday, Nifty did break through our support line, which was yesterday at 6260, but finally broke through at 6275. During the last hour of the day, Nifty made a low of 6223 and then came back to our support line (which had now turned resistance) at 6300 and finally ended the day at 6285. This pullback to the resistance line, as discussed in previous editions of the newsletter, is known as a bears' trap or simply a pullback. We expect the Nifty to continue going down with a small support at 6240 and a stronger one around 6170. Below that we could again be looking at 6000 levels (which appears to be less probable, at the moment).
Bartronics, on this 30 minutes chart, looks like it may have found support. None of the indicators, as of now, are suggesting weakness. The stock has clearly been in an uptrend till now and we should assume that this uptrend shall continue. On this basis, it may be a good time to buy the stock. Consider buying above 270 with a stop loss below 265. Try and avoid buying in the first half hour tomorrow.
Larsen and Toubro, seems to have broken out of a trading range after a big upmove in late October. This breaking out of prices is confirmed by the break of the trendline in the RSI too. After the breakout, the target for the stock is close to 4800. One can consider buying it at the current market price of 4340 with a stop below 4150.
McDowell, for a brief moment today, crossed above its 3 months resistance line but then came down to close below it. A surge in volumes today signifies that the price may breakout again tomorrow. However, RSI still being below 60 maybe a sign for worry. But, if the price does breakout tomorrow, the RSI too is bound to cross 60. Try to stay away from it for the first half hour of the day. But if after that it is trading above 2075, consider buying it with a stop below 2000. The target for this breakout may be close to 2370.
Happy Trading!!!
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