The index has closed in the positive territory and it continues to form higher tops and higher bottoms on the daily chart. The hourly momentum indicator has come well into buy mode along with the daily momentum indicator which is also quite positive. Now, on the lower side, 10670 which is its previous swing low is a crucial support and till those levels are held the bias remains up for the target
TGT: Rs 590
SL: Rs 545
Glenmark has clearly provided a breakout from the falling wedge pattern on the daily charts along with a buy crossover in its momentum indicator MACD both on the daily as well as weekly charts. The weekly indicator has been showing positive divergence since one year, hence we continue to maintain our bias positive on Glenmark for the target
of 590 with a stop loss of 545.
TGT: Rs 121.50
SL: Rs 108
NCC has started to form higher tops and higher bottoms on the hourly charts with a buy crossover in its hourly momentum indicator MACD. The daily momentum indicator MACD has again come into buy mode which is quite positive for the stock. The previous rise was an impulse move i.e. a five waves rising structure and with reversal another impulse on the way up is expected.
The author is Jay Anand Thakkar, Assistant Vice President - Equity Research at Anand Rathi.
Disclaimer: He may / may not have positions in the stocks mentioned above.