NCC Limited

After the price fell from Rs 198 to Rs 28.10, the stock made “Bullish Engulfing Pattern” at the bottom in the weekly chart and moved up. We also saw positive divergence of RSI in weekly chart at bottom.  Stock spent the last  8 months consolidating between the broad range of Rs 28 to Rs 67. We saw good volumes during consolidation stage.

We saw triangle breakout in weekly chart with healthy volumes, which is bullish signal for the stock.

 On the oscillator front,  RSI is moving well above its average and in urge to break the  trendline resistance in weekly chart.

We also saw positive crossover of MACD with its average in positive zone in weekly chart.

Looking at all these indicators and patterns, I expect the price reversal in the stock for the target of 123/191, which is the 61.80% and 100%  projection level of previous bull run.  (CMP: 51.65)

Pantaloon Retail Limited

After the fall from 525 to 126, the stock made “Doji Pattern” at the bottom in the weekly chart and moved up. The share price went into a consolidation mode after moving up. The stock spent the last one year consolidating between the broad range of Rs 125 to Rs 227 levels. Last week it broke the range and closed above that range.

We saw Range breakout in the stock in weekly chart with heavy volumes, which is bullish signal for the stock. After the sharp move we saw correction in the stock. Yesterday it took support of the trendline and moved up.

Volumes increased sharply during the whole base formation which suggests accumulation in the stock by strong hands.

 On the oscillator front, RSI is moving well above its average and making higher lows  in weekly chart, which indicates price to move towards north.

MACD  is also moving in upward direction in positive zone, which  supports the buy call on the stock.

Thus i recommend a buy on the stock at current levels and on dips to Rs 226 with stoploss of Rs 222 on closing basis for the target price of Rs 265/285.

Larsen & Toubro Ltd. - Broke the Support

Larsen & Toubro Ltd.

• After the sharp rise from 1310 to 1657 (spot), the L&T Ltd breached a support trendline and sustained below that level.
• Momentum indicator RSI is showing negative divergence pattern in intraday chart, which indicates a possible correction on cards. Negative crossover of RSI and its average also indicates weakness in the stock.
• MACD and Stochastic Oscillator also took downward direction and moved below their respective averages, which supports the sell call on the stock.
• Stock may reach to Rs 1525, which is 38.20% retracement level of 1310-1657.