BILCARE - BUY CMP 555

 

Bilcare has broken out of ascending triangle pattern as shown in the attached chart. Breakout has happened on 8.3.2010, but as is usually the case it has fallen back to its support line at 552. Yesterday it has bounced from 552 and is poised to move higher. Stochastic is however showing a -ve crossover and this stock should be avoided by conservative traders. Other indicators are neutral to +ve.

SL : 545

Target : 770

TATA ELXSI - BUY - CMP Rs.299

 

Tata Elxsi has shown breakout of symmetrical triangle pattern as shown in above chart. Volumes have increased from 108 K shares to 487 K shares on breakout. Fundamentally also this is a good stock to hold and can be a part of an investors longer term portfolio.

Target : Rs.345

SL : Rs. 285

BOMBAY DYEING - BUY CMP 580

 

Bombay Dyeing looks interesting having broken out of a symmetrical pattern with heavy volumes of 979 K v/s 241 K shares.
Moving Average, Stochastics and MACD have given positive crossovers, while RSI is neutral.

SL : Rs.555

Target : Rs. 655

NIFTY UPDATE

 

Nifty has closed well above its 200 DMA (which provided it with strong support) and is now poised to test new highs. As shown in chart above resistance exists at 5200 and then at 5300 which should act as a healthy pause in this market. Given time and strong global cues Nifty should cross these hurdles without major corrections and head for our long term target of 6800 as indicated by the Inverse Head and Shoulder pattern which has formed on the weekly charts around July 2009. A pause or slight correction would be a good opportunity to get into stocks which are technically well placed. I have a feeling that the time has come for mid and small caps to now make their move. Readers can look at stocks which have bounced off their supports and are yet to move close to resistances. Infrastructure stocks which have not performed so far could prove to be a good bet. If these stocks can be coupled with technically valid price patterns and bouncing off support levels, they can be bought into.

TIMEX GROUP - BUY - CMP RS.24

 

Timex has given a breakout of an Inverse Head & Shoulder Patttern on the weekly charts. The breakout has happened for the second time. It could not sustain the rally the first time around because of adverse market conditions. The rally yesterday was not supported by high volumes because the stock hit the circuit filter of 5 %. Other parameters are positive to neutral.

Stop Loss : 22

Target : 40

NIFTY UPDATE

 

A positive budget has enthused the markets. The Nifty tried to take out the 4950 resistance on Friday but failed to close above it, indicating that the bears still have some firepower left with them. On the whole the martket look like it is going to breakout above its near term resistance of 4950, albeit after some struggle by bears, and head towards 5300. The 5300 high made in January 2010 will be far more difficult to overcome. In my opinion, traders can take a long call on the markets now, after applying the 7 parameters in the case of individual stocks.