Nifty continues to move up but there seems to be no strength in the movement. It is not the kind of swift and easy movement that we have gotten used to. It seems as if the bulls have to put in a lot of effort to make the Nifty to go up. Well, at these levels that is expected. The strength is evident from the RSI too. The Nifty is clearly in an uptrend making new highs while the RSI is unable to surpass its last high. Finally, both the Nifty and the RSI have reached their respective resistance levels. This may lead to a small fall in both prices as well as RSI, though, not necessarily a deep correction. We can expect a decent upmove only when the RSI breaks through its resistance line. Be a buyer above yesterday's highs and a book profits in your longs below yesterdays lows.
Aban Lloyd has made an inverted head and shoulders pattern and has now broken out of it giving us a target of 5800. While it has already gone up by about 300 rupees yesterday, yet another 400 seem to be in the offing. One can consider buying the stock near 5400 with a stop loss of 5050 and wait for a target of 5750-5800.
Financial Technologies seems to have broken out of its downtrend. This is, probably, a good time to buy it from a short to medium term perspective (3-6 months). If things go well, it might give a return of 25-30% from current levels. Keep a stop loss of 2400 for the time being and as the price goes up keep a trailing stop loss.
Praj Industries looks like it is going to move northwards from this point on. A target of 330 seems to be on the cards for this heavy engineering stock. Keep a stop loss of 235 for this purpose and put a trailing stop loss on any price increase.
Reliance Communications, after yesterday's long blue candle, seems to be pushing against the resistance level. The RSI also has made an inverted head and shoulders pattern, which, if broken, will be bullish for the stock. The price chart itself suggests a target of 880 if it is able to cross 770 in a day or two. A stop loss of 700 should be safe, though, even 720 seems to be a support.
Happy Investing!!!
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