Edelweiss Technical Reflection (ETR) 23/2/11

Please Share:: India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��

Edelweiss Technical Reflection (ETR)

§  After the previous day’s smart upmove, Nifty in yesterday’s session gave back some gains on consistent selling throughout the day. An ‘inside bar’ / harami pattern has formed on the daily chart suggesting a substantial move is in the offing once the range of the previous day is broken in either direction. Nifty has closed above 20-DSMA for the second session keeping the short-term uptrend intact.  Hourly MACD continues to trade with a sell crossover but above holds above the zero line. Daily oscillators continue to maintain the bullish status. Market breadth was in favour of the declines. Nifty 50 stocks A/D reversed at 1:4. The small range formed in yesterday’s session will decide the fate of the future course of the index with a break in either direction. However the potential ‘inverted head & shoulder’ (bullish) pattern with neckline at 5620 remains in place if the 5526 swing high is taken out.

§  Most sector indices turned in the red yesterday with only Oil & Gas and Consumer Durables holding on to gains. Cap Goods shares declined the most followed by losses in Auto and Banking shares. BSE Oil & Gas index has crossed above 9593 to trigger a buy signal based on higher highs and higher lows on the weekly chart. Bullish Setups: Power Grid (PWGR), WIPRO, Adani Ent (ADE), GSPL (GUJS), HDIL Bearish Setups: Sintex (SINT), Tata Motors (TTMT), Ranbaxy (RBXY), ITC

§  European equities have turned sharply lower on scorching Crude Oil price. Momentum oscillators have rolled bearish and a sustained down move is likely in the next one month. Commodities are trading with heightened volatility, as Agri commodities have commenced a down move whereas Energy & Precious Metals are ticking higher.