Friday 5 October 2012

ICICI BANK




One can clearly see a dark cloud cover cum hanging man candle formed on icici bank daily chart which indicates bearishness in the stock, MACD is also about to give a sell sign, RSI is also showing that it is overbought so i expect it to fall a bit.                           
So in that case one can Short Sell ICICIBANK OCTOBER 1100 STRIKE CALL @ 23-24 and Buy around 15.

GOLD



One is clearly able to see on the weekly charts that the gold is facing a resistance at $1790 as it has retraced from those levels two times before also and on the daily chart one is able to see a formation of dark cloud cover with weekly RSI of 68 and daily RSI of 70 so i would go with the trade that one can short gold @ 1790 levels and buy back around 1770.

LARSEN & TOUBRO

There is a hanging man candle formed on larsen and tourbo weekly chart(although it was due to flash crash that happened in nifty today),the weekly RSI(69) and daily RSI(76) are suggesting it is highly overbought so we can expect some correction, trade that one can form is by short selling october 1700 strike call @ 27 and buy back around 16.

ADANI POWER

Formation of dark cloud cover pattern on adani power daily chart with RSI also showing overbought signs ,there is decent amount of volume supporting the fact that bears are now active in it, so one can trade on adani power by selling its october futures@ 54 and simultaneously buying 55 october strike call @ 2-2.5 for protection.