Indian Stock Market Tips for 4th June, 2010: BUY HDIL
June 4, 2010 by admin
Filed under Analyst's Corner, General
STOCK TIPS FOR JUNE 04, 2010: BUY HDIL
On the Daily Charts, HDIL is now bottoming out, which has been by proved by its Thursday’s closing. The stock has crossed its 20-Days EMA (Exponential Moving Average) of 232.59 by making a high of 235 for the day. Stock’s 50-Days SMA (Simple Moving Average) is quoting at 262.98, which may act as a good resistance level for the stock.
In the coming days, if stock crosses this level, it will be very strong and will touch new highs.
The 14-Days RSI (Relative Strength Index) has given a BUY Signal on the intraday charts and is quoting at 45.15 on the Daily Charts (RSI below 50 indicates weakness or confirms the Selling signal).
The Negative Directional Index (25.87) is still above the Positive Directional Index (21.11), ADX (Average Directional Index) has gained strength on intraday charts and is quoting at 35.90. ADX’s value above 20 and near 40 indicates that the underlying trend is strengthening.
Hence, it is recommended to accumulate HDIL only above 235 for the Target of 260 & 270, with the Stop Loss of 220.
Contributed by Sonal Natani MS(Finance), ICFAI, Hyderabad.
