Analysis: IDEA

Today’s pick is [stockquote]IDEA[/stockquote]. The stock has been range-bound between the levels of 75 and 100 for most part of the year. However, since September the stock is moving in an uptrend after testing the support levels. In the last three months, the stock moved 21% against 3% as that of Nifty’s.


Oscillators RSI and CMO are at currently at 64 and 40 are close to the over-bought territory.

MACD line has just crossed signal line from above signaling a bearish move.

The long-term GMMA lines are fanning out giving out a bullish signal, with a synchronized behavior of the short-term lines. A continued trend like this is a bullish sign for the stock.


IDEA’s average correlation of 0.40 with the Nifty is positive. The stock will not be able to replicate the movements of Nifty. [stockquote]NIFTYBEES[/stockquote]


IDEA has a historical volatility in the range of 0.4 to 0.9. The scrip’s volatility is currently in the lower end of the range and hence is not a concern.

Looking at these technicals a short-term sell is suggested. A longer-term buy call could be made after a decisive testing of the up-trend line in place.

Enhanced by Zemanta

Comments are closed, but trackbacks and pingbacks are open.