Granules India: Price Range for Nov between 102 and 94

GRANULES INDIA Daily NSE Stock Chart Technical Analysis

The Granules India price closed on Thursday with a note of indecision about what will happen next.  

The price opened at 98.15 and rallied up to 100 to finally close at 98.  

Market Outlook:  

• The price should close above today's close in the next trading period, but not above 99.  If price returns after touching 99, there might be a short term opportunity to short this stock, based on confirmation from other indicators.
• The upper & lower limits of price in Nov '10 are 102 and 94.  Breaking any of these price limits could give important buy-sell signals

Technical Indicators:

• The Doji formation with its body in the lower half suggests heavy selling pressure, but this pressure is weak and the price should not fall back again tomorrow.
• A long term resistance line has turned into support, and vice-versa, after the breakout below the line on 29 Oct '10 as is visible on the chart. 
• We can see the upper and lower limits of the price for this month on the chart as visualized by the rectangle.  The price should play between these limits of 102 and 94 for the month and could give short term opportunities to make money by buying at line of diagonal support and selling at line of diagonal resistance.
• If price goes above 102 or falls below 94 with significant amount of trading, then buy above 102 and go short or sell below 94.  But this needs to be done if other indicators are also confirming these signals. 

(Analyzed on request of Srinivas, Hyderabad)