Wednesday, 20 January 2016

NIFTY (INDIA-NSE). MARKET MAY BE OVERSOLD AND TIME TO COVER SHORTS?. WEEKLY CHART ANALYSIS UPDATED JAN 20 2016.

Nifty has been under the onslaught of the Bears over the past several months and our advised levels of 7300/7500 zone have been achieved. We advise covering shorts at the current levels as the Weekly RSI is at extreme oversold zone and there can be a snap rally on the cards. The long term down trend can be assumed to be reversed only after the market has broken above the 8000 mark. A rally to 7700/7800 zone is likely and further directional movement can be assessed only after the proposals of the Union Budget are unveiled. Bulls need to be watching out for accumulation signals in the 7000/7200 zone before extending volume support. This is a good time for investors with longer time frame of greater than 3 years to start buying on every dip.

BEAR SELLING OVERDONE?

Sunday, 3 January 2016

RELIANCE INFRASTRUCTURE(RELINFRA-NSE-INDIA-CMP 591.8)- TURNING BULLISH FOR THE LONGER TERM?-WEEKLY CHART ANALYSIS UPDATED JAN 3 2016

Reliance Infrastructure (RELINFRA-NSE-INDIA) is starting to look bullish on longer term charts and has broken to new yearly highs. The support at 280/300 zone has been defended well by the Bulls over the past several months. Fundamentally, news about the asset sale to reduce debt has been doing the rounds has provided some help to Bulls to ramp up the prices further. We advise investors to buy on dips as the stock is now overbought even on weekly charts for higher targets 700/750 plus in the coming months.Stops need to be placed at 450 Rs on closing basis. Standard Disclaimers apply.

RELINFRA TURNING BULLISH FOR THE LONGER TERM?





Sunday, 13 December 2015

PUNJAB NATIONAL BANK (PNB-NSE)- STOCK APPROACHING LONG TERM SUPPORT ZONES. WEEKLY CHART ANALYSIS UPDATED DEC 13 2015.

The stock of Punjab National Bank (PNB- NSE-India) has been in a firm down trend over the past several months with no respite in the selling pressure. Fundamentally, market is pricing in a lot of bad news in the form of NPA write-offs with the stock quoting at a substantial discount to the adjusted book value. The next level of technical supports lie around the 90-100 zone. The 200 DMA is in the region of 156 and we need the stock to be trading above that region before assuming a bullish stance. Value buyers who can wait for 2-3 years can start buying into the stock gradually at every fall. Market may be getting over pessimistic on PSU Banks in general but investors are advised to buy only the large caps which can withstand competition.
PNB TURNING INTO A VALUE BUY NEAR 90-100 LEVELS?

Monday, 7 December 2015

NIFTY (INDIA)- BULLS UNDER PRESSURE AND WILL SUPPORT AT 7700 HOLD?. DAILY CHART ANALYSIS UPDATED DEC 7 2015.

NIFTY  INDEX (INDIA)- The technical picture of Nifty appears to be bearish as Bulls have been unable to take down the downward sloping line resistance over the last several months. The index is also trading below the long term 200 DMA now for over 4 months and has been making lower lows. The inability of the Government to pass crucial bills  and showcase a reform agenda has started taking a toll on the optimism of the participants in general. Over the last few months, there has been substantial foreign institutional selling in the cash markets. This has been absorbed to some extent by the domestic institutions but to what extent this scenario will continue is anybody's guess. We advise investors not to place aggressive bullish bets at this juncture and wait for the index to cross 8000 levels even for considering a bullish position.Support of 7700 if threatened will see lower levels of 7500 rapidly.

BULLS ON BACK FOOT.7700 SUPPORT LEVEL CRUCIAL

Sunday, 29 November 2015

SUN PHARMA (NSE-INDIA)- NEAR CRITICAL FIB SUPPORT ABOUT TO GIVE WAY? CMP 739.9 WEEKLY CHART ANALYSIS UPDATED NOV 30 2015.

The stock of Sun pharma is in a distinct bear phase with the prices moving below multiple fibonacci retracement levels over the past several months. Prices have rebounded from the 78% level of Rs 700 which can be termed as the last support level before Bears hammer the stock to much lower levels. Fundamentally, news about the company finding it difficult to digest the Ranbaxy acquisition is not helping matters. Moving averages are in the negative crossover indicating prolonged selling pressure. Stock can make a trading rally from oversold levels but it is best it is treated as a dead cat bounce where higher levels should attract even more selling pressure.

SUN PHARMA- NEAR LAST LINE OF DEFENCE?

Friday, 13 November 2015

TATA CONSULTANCY SERVICES(TCS- NSE-INDIA)- BEARS ABOUT TO TAKE CHARGE IN TCS FOR A 15-20% DOWNSIDE? WEEKLY CHART ANALYSIS UPDATED NOV 13 2015

The stock of TCS is showing signs of a bearish technical breakdown after trading for almost a year within a defined range of 2850/2350 with distinct signs of distribution at higher levels on increasing volumes. Traders can look at taking short positions on break of 2350 on the futures or buy puts to participate in the coming downside. Distribution in a large cap like TCS definitely means that the institutional investors are exiting on every rise. Once the level of 2350 breaks, there is every possibility of a 15-20% downside in the coming months. Long term investors may also exit on such a breakdown when it occurs and re-buy the stock at lower levels as indicated.


 The chart is for educational purposes and standard disclaimers apply.


TECHNICAL BREAKDOWN IN TCS LOOMING LARGE?

Sunday, 1 November 2015

JET AIRWAYS (INDIA-NSE) CMP 437.4. BULLISH TRIANGLE BREAKOUT INDICATES POSSIBLE 10-15% GAIN IN PRICES. WEEKLY CHART UPDATED OCT 30 2015

The stock of Jet Airways (NSE-India) has given a bullish breakout out of a triangle pattern (marked by blue lines) and is poised to gain by around 10-15% in the coming weeks. The fact that prices cleared the overhead resistance near 430-435 levels on the back of good volumes supports a bullish prognosis. The macro picture has also turned supportive with the crude prices remaining below 50 $ for an extended period of time which has helped the airline post good operational numbers for the Sep 2015 quarter.

Long term investors can place stops near the 365-370 zone and wait for targets in the region of 480-500 in the coming weeks.

BULLISH BREAKOUT FROM TRIANGLE PATTERN.