Category: Your Money

Analysis: WHIRLPOOL

Today’s pick is WHIRLPOOL [stockquote]WHIRLPOOL[/stockquote]. The stock started has been on an uptrend since the beginning of the year and experienced the 52 weeks high of Rs. 290 in December. However currently it is undergoing a double top formation, a few more close below Rs. 265 levels will confirm the same. In the last three months, the stock has moved +1% vs. +6% of the Nifty’s.

WHIRLPOOL technical analysis chart

Oscillators RSI and CMO are hovering close to the over-sold territory but are not suggesting any direction. The stock is below the lower Bollinger band, which is bullish for the stock.

The MACD line and signal line are moving away from each other and unable to suggest any short-term direction. Long-term and short-term GMMA lines are moving very close to each other and are unable to point towards any direction for the scrip.

WHIRLPOOL correlation chart

WHIRLPOOL’s average correlation with the Nifty is Zero. The scrip will be moving independent of the movement of Nifty. [stockquote]NIFTYBEES[/stockquote]

WHIRLPOOL volatility chart

WHIRLPOOL has a historical volatility in the range of 0.4 to 1.0. The scrip’s volatility is currently in the lower end of the range.

Given these technicals, we suggest a short-term Sell. A longer term call could be taken if the stock is able to penetrate through the Rs. 290 resistance.

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Preetam’s List

Market Roundup: Dow +0.33% to 13825. S&P flat. Gold -0.04% to $1667. London+1.09%. Germany +0.53%. France +0.70%.

BSE Ltd will float its initial public offer (IPO) in the first quarter of fiscal 2014 through the offer-for-sale (OFS) route. “If the company at is valued at Rs.4,000 crore, the exchange will dilute only 10% to raise Rs.400 crore through the IPO, but if the valuation is lower, 25% stake of the existing shareholders could be sold through the IPO. (MINT)

SKS Microfinance Ltd, [stockquote]SKSMICRO[/stockquote] India’s only listed micro lender, ended a seven-quarter loss-making streak on Thursday by posting a small profit for the three months ended 31 December, helped by higher loan demand in markets outside of Andhra Pradesh and significant cost cuts. (Businessline)

Jaguar Land Rover Ltd (JLR) negative announcements regarding lower profitability, increased capital expenditure and the consequent negative free cash flows led to a dramatic fall of TATA MOTORS Ltd. [stockquote]TATAMOTORS[/stockquote] , [stockquote]TATAMTRDVR[/stockquote]. JLR accounts for around 90% of net profit and 75% of net sales. (MINT)

Natural decline in output from some of the natural gas producing fields coupled with continued fall in output from the country’s largest fields saw the domestic production fall for the 25th straight month in December. To meet the growing petroleum product demand and no significant increase in indigenous output, the domestic refiners were compelled to import more crude oil in December year-on-year. [stockquote]RELIANCE[/stockquote],[stockquote]GAIL[/stockquote],[stockquote]PETRONET[/stockquote]. (Businessline)

An unlikely partnership between profitable FMCG companies like Hindustan Unilevert[stockquote]HINDUNILVR[/stockquote] and Dabur [stockquote]DABUR[/stockquote] and penniless rag-pickers is now offering a hint of a fix to India’s 12,000 tonnes a day plastic junk pile-up. A new way of CSR? (ET)

Happy weekend!!

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Daily News Summary for Jan/24

JSWSTEEL [stockquote]JSWSTEEL[/stockquote]
    JSW Steel to experiment with inferior quality ore

BHARTIARTL [stockquote]BHARTIARTL[/stockquote]
    Bharti Airtel, Idea set stage for call rate hike

HEROMOTOCO [stockquote]HEROMOTOCO[/stockquote]
    Output hit at Hero plant

RCOM [stockquote]RCOM[/stockquote]
    Analysis: RCOM
    RCom net falls 43% on finance costs

TATAMTRDVR [stockquote]TATAMTRDVR[/stockquote]
    JLR likely to see margin fall

EXIDEIND [stockquote]EXIDEIND[/stockquote]
    Exide in full charge at ING Vysya

HAVELLS [stockquote]HAVELLS[/stockquote]
    Havells eyes US as other markets cool

ORISSAMINE [stockquote]ORISSAMINE[/stockquote]
    OMDC retains lease of 3 Orissa mines

ONGC [stockquote]ONGC[/stockquote]
    ONGC shares jump 5% on natural gas price hike hope

COLPAL [stockquote]COLPAL[/stockquote]
    Strike at Colgate-Palmolive Goa unit ends

VIJAYABANK [stockquote]VIJAYABANK[/stockquote]
    Vijaya Bank Q3 net profit rises marginally YoY at Rs 127 cr

MAHABANK [stockquote]MAHABANK[/stockquote]
    Bank of Maharashtra to raise equity capital upto Rs 1062 crore

POWERGRID [stockquote]POWERGRID[/stockquote]
    Jindal Steel wins Rs 500 cr order from Power Grid

SHOPERSTOP [stockquote]SHOPERSTOP[/stockquote]
    Shoppers Stop opens one M.A.C door at Shoppers Stop

GOLDBEES [stockquote]GOLDBEES[/stockquote]
    Gold down Rs 95 on weak global cues
    Gold futures fall on global cues, profit-booking

RALLIS [stockquote]RALLIS[/stockquote]
    Rallis India to hike stake in Zero Waste Agro

PRESTIGE [stockquote]PRESTIGE[/stockquote]
    Prestige fixes IPP price at Rs 160 per share

SUZLON [stockquote]SUZLON[/stockquote]
    Suzlon gets nod for debt revamp

TATACOMM [stockquote]TATACOMM[/stockquote]
    Tata Comm incurs Rs 67 cr liability on structural changes

MARUTI [stockquote]MARUTI[/stockquote]
    Maruti Suzuki mulls India’s first small hybrid car

Analysis: RCOM

Today’s pick is RCOM [stockquote]RCOM[/stockquote]. The stock started the year with a very quick up-move which experienced resistance around Rs. 110 levels in Feburary. After a head-and-shoulder top formation, the stock started its down-ward movement to see a bottom of Rs. 50 by September. Since then, the stock has been on an up-move. In the last three months, the stock has moved +54% vs. +7% of the Nifty’s.

RCOM technical analysis chart

Oscillators RSI and CMO are hovering close to the over-bought territory and are suggesting a short-term bearish price action. The stock is close to the upper Bollinger band, which is suggesting a bearish move for the stock as well.

The MACD line and signal line are moving very close to each other unable to suggest any short-term direction. Long-term and short-term GMMA lines are well dispersed and are pointing towards a bullish long-term direction for the scrip.

RCOM correlation chart

RCOM’s average correlation with the Nifty is 0.62 is positive and strong. The scrip will be closely replicating the movement of Nifty. [stockquote]NIFTYBEES[/stockquote]

RCOM volatility chart

RCOM has a historical volatility in the range of 0.4 to 1.0. The scrip’s volatility is currently in the middle of the range.

Given these technicals, we suggest a short-term Sell owing to the little divergence of price with momentum oscillator. A longer term Buy is suggested attributing to the well spread out GMMA lines and current up-trend. However, we suggest having trailing stop-losses in place, in case trend-reversal were to take place.

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