Current market scenario being too volatile, choppy & directionless provides very less opportunities to decipher long term pattern formations.
Therefore following are some short term trading strategies for the following week; strict stop loss adherence is expected! Most the momentum indicators in tandem with Candle Stick patterns have been used.
SENSEX – 15750
Average Directional Index along with Bearish Shooting Star pattern indicates probable correction to 15750. Upside targets of 15986 / 16480
Bharti Airtel – LONG - 360
Morning Star candle stick pattern ensures a Bullish Reversal signal, supported by increase in volumes. Stock could see price levels of 355 – 360 in a week`s time. Stop loss at 344.
Coal India – SHORT - 295
Bearish Engulfing pattern, confirmed with Volume trends indicate stock moving towards its next immediate support at 295. Stop Loss at 302
HDFC – SHORT – 616
MACD Bearish Divergence with Candlestick Doji, showed lack of indecision, resulting into the stock following the major market trend. Immediate support at 622
Bank of Maharashtra – SHORT - 41
Bearish Shooting Star Candlestick pattern, bearish MACD Divergence, and 20DMA bearish crossover of 50DMA. Stop Loss at 46
Pantaloon – SHORT -137
Still some pain left, as per the RSI indicator still shows strength. MACD shows bearish divergence. Stop Loss at 152.
Also, look out for the correction in the Commodities segment, especially precious metals like Gold & Silver, with the growth in funding stress for the Euro regions.
