Technical Analysis:Infosys,Reliance and Manglam Cement

By | October 10, 2010 2:31 pm

Mangalam Cement

Mangalam Cement  is on the Verge of giving breakout  from trendline resistance line at Rs 168 as shown in below daily charts
Along with breakout stock has also closed above its 200-DMA which is prevailing at levels of Rs165.6 for second consecutive trading
session. Such a move is likely to catch buying interest from most of market participant as it indicates that medium term downtrend has been voided.

On the weekly chart RSI has given positive crossover and MACD is also giving buy signal.

Volumes trend have been quiet encouraging which with positive reaction with price uptick.

Based on above mention technical observation

Buy on close above 168 Tgt 174 and 180

Reliance Industries

Reliance industries has given breakout from falling resistance line after it closed above Rs1050 surpassing earlier peak of Rs1,048.50.
Along with breakout stock has also closed above its 200-DMA which is prevailing at levels of Rs1,033 for third consecutive trading
session. Such a move is likely to catch buying interest from most of market participant as it indicates that medium term downtrend has been voided. On the upside we see immediate resistance at levels of Rs1095 which pertain to peak made during June 2010. On the
weekly chart RSI has given positive crossover after formation of inverted head & shoulder which can be construed as positive
development in the stock. RSI is yet to enter overbought position which also supports our buying argument.

Volumes trend have been quiet encouraging which with positive reaction with price uptick.

Based on above mention technical observation

Buy above Rs1,057 with stop loss of Rs1,033 for Target of Rs1,095.

Infosys Technology

Infosys Technology is forming a Higher Top and Higher Bottom Formation on weekly charts.If one have look at daily charts Infy one can see it is respecting it s trendline and taking support at it and moving higher.

If this tresnline breaks we can see a downside on cards as Technical Indicators MACD is giving a SELL on daily charts and Negative Divergence in RSI is visible

Sell below 3037 Tgt 3017 and 2998

Buy above 3085 Tgt 3095,3114 and 3144

Leave a Reply