Invest Without Emotions
The NIFTY ended on a bullish note, shooting up +1.88% for the week.
Biggest losers were M&M (-5.53%), WIPRO (-5.38%) and HEROMOTOCO (-4.10%).
And the biggest winners were BPCL (+17.32%), ONGC (+15.51%) and DLF (+13.99%).
Advancers lead decliners 26 vs 24
Gold: +0.15%, Banks: -0.74%. Infrastructure: -0.74%,
Net FII flows for the week: $725.83 mm (Equity) and $39.37 mm (Debt)
Today’s pick is JUBLFOOD [stockquote]JUBLFOOD[/stockquote]. The stock has been on an up-move since the beginning of last year and it experienced the 52 weeks high of 1,400 in October. Since then the stock has been in a downward sloping flag formation. In the last three months, the stock has moved -4% vs. +6% of the Nifty’s.
Oscillators RSI and CMO are nearing the over-sold territory and are suggesting a short-term bullish price action. The stock is close to the lower Bollinger band, which is suggesting a bullish 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 very close to each other and are not able to point at the direction of stock movement.
JUBLFOOD’s average correlation with the Nifty is -0.06 is negative. The scrip will not be replicating the movement of Nifty. [stockquote]NIFTYBEES[/stockquote]
JUBLFOOD has a historical volatility in the range of 0.4 to 1.0. The scrip’s volatility currently is in the lower end of the range.
Given these technicals, we suggest a short-term Buy. A longer term call could only be taken based on the direction of the breakout from the flag in formation. Although, It will be beneficial to have trailing stop-losses in place.
Market roundup: Dow +0.63% to 13596. S&P +0.56% to 1481. Gold +0.08% to $1689. London +0.46% . Germany +0.58%. France +0.96%.
US stocks climbed on Thursday, with the S&P 500 advancing to a five-year intraday high on signs of strength in the housing and job markets and on better-than-expected results from online marketplace eBay. Asian markets seem to be high on the same ground as well. (Bloomberg)
The government has deregulated the diesel prices and has authorized state-run oil marketing companies to raise diesel prices in small amounts from time to time. Although, the partial diesel deregulation is an important step forward, its proper implementation is key to bring about the intended change. BPCL[stockquote]BPCL[/stockquote], IOC[stockquote]IOC[/stockquote] and HPCL[stockquote]HPCL[/stockquote] were up 3%-6.5% yesterday .(MINT)
Air India today temporarily stopped operations of its Boeing 787 Dreamliner aircraft on the directive of the country’s aviation regulatory authority, the DGCA. This decision was taken after US Federal Aviation authority directive warned of a potential fire hazard on the aircraft. (ET)
When it comes to core operating profit, state run banks will likely have a dull third quarter as a slowdown in economic activity forced companies to rein in their capital-intensive projects. Bad debts at 5.54% are a major cause of concern. IDBI [stockquote]IDBI[/stockquote] comes out with its Q3 result today. [MINT]
When the economic crisis erupted in 2008, many Europeans assumed they were facing a couple of bad years. But the crisis, now in its fifth year, seems to go on and on, using up unemployment benefits, eating through savings accounts and dashing dreams of an easy retirement. Here is an account of what is the condition around the European countries in a photo-journalistic format with no way out in sight. (NYTIMES)
Happy weekend!
Today’s pick is TATACOFFEE [stockquote]TATACOFFEE[/stockquote]. The stock has been on an up-move since the beginning of last year and it still continues. It just saw its 52-week’s high level of Rs. 1,673 a week ago. In the last three months, the stock has moved an astonishing +54% vs. +6% of the Nifty’s.
Oscillators RSI and CMO are currently in no man’s land but are seeing a bearish divergence with the price action. Short-term technical just saw a 9×4 bearish cross-over.
The MACD line has just penetrated the signal line in a bearish move for the stock. Long-term GMMA lines are well dispersed out, suggesting a bullish outlook for the scrip for longer term. However, short-term GMMA lines are starting to move towards each other giving a bearish outlook for the short term.
TATACOFFEE’s average correlation with the Nifty is 0.56 is positive and strong. The scrip will be replicating the movement of Nifty closely. [stockquote]NIFTYBEES[/stockquote]
TATACOFFEE has a historical volatility in the range of 0.4 to 1.2. The scrip’s volatility currently is in the middle of the range.
Given these technicals, we suggest a short-term Hold. Looking at the well dispersed GMMA lines and the long-term trend in place we suggest a long-term Buy for the script. . It will be beneficial to have trailing stop-losses in place, in order to book profits if a trend-reversal were to take place.
Market roundup: Dow –0.17% to 13511. S&P +0.02% to 1472. Gold -0.20% to $1679.70. London –0.22% . Germany +0.20%. France +0.30%. Nifty -0.90%.
Last month, DLF [stockquote]DLF[/stockquote] announced a deal to sell its stake in luxury hotel group Aman Resorts. Last year, it sold another hotel firm in Kolkata and also a large land parcel in Mumbai. And now in order to cut back on its debt, DLF is set to divest its wind energy business to Bharat Light and Power. (ET)
IMF’s Financial System Stability Assessment Update said it would be prudent for India to first put in place and gain sufficient experience in implementing a comprehensive framework for the purpose before considering the entry of conglomerates into banking. It’s a good idea to learn from the mistakes made by the west and not rush into giving away banking licenses. (MINT)
Production at U.S. factories climbed more than forecast in December and the cost of living was little changed, showing the economy gained momentum entering 2013 while inflation remained at bay. The 0.8% advance in Manufacturing output and unchanged consumer-price index were not enough to boost the markets after the gloomy growth projections made by World Bank on Tuesday. (Bloomberg)
Accrding to SEBI guidelines all listed firms (outside government control) need to have a minimum public shareholding of 25%, while state-controlled ones need to have at least 10% stake held by public. In order to achieve this, SEBI may soon enable preferential allotments and qualified institutional placements (QIPs) as legitimate routes in the list of alternatives. (MINT)
