With the probability of Nifty entering into a medium term correction due to the formation of top out pattern in the short and long term moving average, some more correction is expected to happen in selected stocks. The technicals are suggesting some correction to happen in Moser Baer.
• The short term moving average (20-EMa) and the medium term moving average (50-EMA) are trading near each other. This could act as a strong support for the scrip.
• The ADX is trading at near 48 levels. The scrip would go for a correction if the top out formation of the indicator occurs. This would generate a definite sell signal for the counter for which the moving averages would provide the support. The +DI is decreasing in the past sessions and the –DI is nearly forming a bottom which could reverse in the coming sessions.
• The MACD trend indicator is giving a high movement signal for the stock prices. The MACD line crossing the Signal line on a relative basis would generate a strong sell signal for the scrip. The MACD Histogram stepping in the negative region would give some selling trend on the counter.
• The Slow Stochastic momentum is trading above the 80 levels from last few trading sessions. The penetration of the %K line into the lower levels would bring some fresh selling momentum into the scrip. With the %D line also coming to lower levels would give selling momentum to the counter.
We advise to go short on the scrip in the 69.15-68.75 range with a strict stop loss of 1% placed at 68.80 for a price target of 66.35-65.95.
Akash Singh, Technical Analyst [Akash@hbjcapital.com], HBJ Capital Services Pvt Ltd.
0 comments:
Post a Comment