Author: Abhishek

Analysis: GOLDBEES

Today’s pick is GOLDBEES [stockquote]GOLDBEES[/stockquote]. The ETF started the year with an uptrend to reach 52 weeks high of Rs. 3,100 levels. This level proved to be a resistance, and the ETF saw a formation of double top by the end of November. Since then the ETF is in a continuous down-trend. In the last three months, the ETF has moved -7% vs. +5% of the Nifty’s.

GOLDBEES technical analysis chart

Oscillator RSI and CMO have been trading close to the over-sold territory since long, and are not giving any directional bias. The ETF is trading in the lower end of a very compact Bollinger band giving no directional bias. Short-term technical just saw 9×4 bearish cross-over.

The MACD line and signal line are moving parallel to each other, unable to give any outlook. Also, Long-term and short-term GMMA lines are running close to each other and are not giving out any directional bias.

GOLDBEES correlation chart

GOLDBEES’s average correlation with the Nifty is -0.02 which is negative. The scrip will not be replicating movement of Nifty. [stockquote]NIFTYBEES[/stockquote]

GOLDBEES volatility chart

GOLDBEES has a historical volatility in the range of 0.1 to 0.4. The scrip’s volatility is currently in the lower end of the range.

Given these technicals, we suggest a short-term sell. For the long-term we could take a call based on the ETF’s behavior around Rs.2,700 support levels.

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Analysis: STER(SLT)

Today’s pick is STER [stockquote]STER[/stockquote]. The stock started the year with a rush to Rs. 140 levels, and after peaking off, it started its descent. The stock found a support around Rs 90 levels. Since then the stock has tested the support many times. Also, the stock seems to have found resistance around Rs. 120, which was tested twice in December, and stock again plummeted to the support levels. In the last three months, the stock has moved +3% vs. +5% of the Nifty’s.

STER Technical analysis chart

Oscillator RSI and CMO are closing in towards the over-sold territory. The stock is trading in the lower end of a very large Bollinger band range giving bullish bias.

The MACD line and signal line are moving parallel to each other, unable to give any outlook. Stagnating histogram levels do suggest forthcoming trend reversal. Also, Long-term and short-term GMMA lines are running close to each other and are not giving out any directional bias.

STER Correlation chart

STER’s average correlation with the Nifty is +0.71 which is positive and strong. The scrip will be replicating movement of Nifty closely. [stockquote]NIFTYBEES[/stockquote]

STER Volatility chart

STER has a historical volatility in the range of 0.3 to 0.8. The scrip’s volatility is currently in the lower end of the range and hence not a concern for the traders.

Given these technicals, we suggest a short-term sell. For the long-term we suggest to take a call based upon its behavior around the support levels.

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Analysis: AUROPHARMA

Today’s pick is AUROPHARMA [stockquote]AUROPHARMA[/stockquote]. The stock spent half of the year in a channel between Rs. 100 and Rs. 140. It broke out bullishly in August, and saw its 52 week high of Rs. 200 in January. Since then the stock has been moving downwards. In the last three months, the stock has moved +2% vs. +6% of the Nifty’s.

AUROPHARMA technical analysis chart

Oscillator RSI and CMO are closing in towards the over-sold territory. The stock is trading in the lower end of a very compact Bollinger band giving no directional bias. Short-term technical just saw 9×4 bearish cross-over.

The MACD line is closing and the signal line are moving parallel to each other, unable to give any outlook. Also, Long-term and short-term GMMA lines are running close to each other and are not giving out any directional bias.

AUROPHARMA correlation chart

AUROPHARMA’s average correlation with the Nifty is +0.48 which is positive. The scrip will be replicating movement of Nifty. [stockquote]NIFTYBEES[/stockquote]

AUROPHARMA volatility chart

AUROPHARMA has a historical volatility in the range of 0.4 to 1.2. The scrip’s volatility is currently in the lower end of the range.

Given these technicals, we suggest a short-term sell. For the long-term we suggest to watch out for a directional expansion of the GMMA lines.

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Analysis: RELINFRA

Today’s pick is RELINFRA [stockquote]RELINFRA[/stockquote]. The stock started the year with a double top around Rs 650 levels, and then moved down to find support around Rs. 430 levels. Since then the stock has been under a pennant formation, currently narrowing down. In the last three months, the stock has moved +7% vs. +6% of the Nifty’s.

RELINFRA Technical analysis chart

Oscillator RSI and CMO are close to the over-sold territory. The stock is trading in the lower end of Bollinger band giving an upward bias.

The MACD line is closing and the signal line are moving parallel to each other, unable to give any outlook. Also, Long-term and short-term GMMA lines are running close to each other and are not giving out any directional bias.

RELINFRA Correlation chart

RELINFRA’s average correlation with the Nifty is -0.1 which is negative. The scrip will not be replicating movement of Nifty. [stockquote]NIFTYBEES[/stockquote]

RELINFRA Volatility chart

RELINFRA 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. For the long-term we suggest to watch out for a directional break-out of the pennant to make any call.

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Analysis: SUZLON

Today’s pick is SUZLON [stockquote]SUZLON[/stockquote]. The stock started the year with a series of tops at Rs 30 levels, and then the stock slowly moved down to find support around Rs. 15. After hovering around the same levels for three months it started its current up-move in Late November. In the last three months, the stock has moved +60% vs. +5% of the Nifty’s.

SUZLON Technical Analysis Chart

Oscillator RSI and CMO are close to the over-bought territory. The stock is trading in the upper end of Bollinger band giving a downward bias.

The MACD line is closing in towards the signal line in a bearish manner and is being confirmed by the dropping histogram levels. However, Long-term GMMA lines are quite distant from each other and are giving out a bullish signal for long-term.

SUZLON correlation chart

SUZLON’s average correlation with the Nifty is 0.57 which is positive and strong. The scrip will be replicating movement of Nifty closely. [stockquote]NIFTYBEES[/stockquote]

SUZLON Volatility chart

SUZLON has a historical volatility in the range of 0.4 to 1.2. The scrip’s volatility is currently in the upper end of the range.

Given these technicals, we suggest a short-term sell. For the long-term, the GMMA lines, and strong up-trend are suggesting a BUY. However trailing stop-losses will be of help in case sudden trend-reversal were to take place.

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