Author: Abhishek

Analysis: COALINDIA

Today’s pick is COALINDIA [stockquote]COALINDIA[/stockquote]. The stock had a real good start of the year with an uptrend till May, but it could not sustain the momentum and crashed to its support levels at Rs. 300. The stock has been in an uptrend since June, touching its 52 week high around Rs. 380. In the last three months, the stock has moved – 4% vs. 5% of the Nifty’s.

COALINDIA technical analysis chart

Oscillators RSI and CMO are in no man’s land suggesting no direction for the stock.

The MACD line and the signal line are moving close to each other – directionless. Both long-term and short-term GMMA lines are seeing a constrained movement leading to an indecisive future for the stock. Short-term technical gave an 18×9 bearish signal for the stock last week.

COALINDIA correlation chart

COALINDIA’s average correlation with the Nifty is zero. The scrip will be not be replicating the movement of Nifty. [stockquote]NIFTYBEES[/stockquote]

COALINDIA volatility chart

COALINDIA has a historical volatility in the range of 0.3 to 0.9. The scrip’s volatility currently is in the lower range.

To conclude, given these technicals, the stock is a short-term HOLD. However, given the current up-trend in the progress, the scrip is a long term BUY with a resistance level close to Rs. 380.

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Analysis: MARICO

Today’s pick is MARICO [stockquote]MARICO[/stockquote]. The stock has been in an uptrend since the very beginning of the year. It touched the 52 week high of Rs. 232 a couple of weeks ago, and is still continuing in the upwards direction. In the last three months, the stock is up 15% vs. 5% of the Nifty’s.

MARICO technical chart

Oscillators RSI and CMO are in no man’s land suggesting no direction for the stock.

The MACD line and the signal line are moving close to each other – directionless. Both long-term and short-term GMMA lines are well dispersed giving a very prominent bullish signal for the stock. Short-term technical gave a 4×9 bullish signal for the stock last week.

MARICO correlation chart

MARICO’s average correlation of 0.35 with the Nifty is positive. The stock will replicate the movements of Nifty. [stockquote]NIFTYBEES[/stockquote]

MARICO volatility chart

MARICO has a historical volatility in the range of 0.4 to 0.8. The scrip’s volatility currently is in the lower range.

To conclude, given these technicals, the stock is a short-term BUY. Following the current trend in the progress, the scrip is also a long term BUY.

Disclaimer: The author has a long position in this stock

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Analysis: AMBUJACEM

Today’s pick is AMBUJACEM [stockquote]AMBUJACEM[/stockquote]. The stock started an uptrend in June, after a range-bound start for the year. After reaching its 52 week high of Rs. 223/- in October, the stock has been under a pennant formation. In the last three months, the stock is up 8% vs. 7% of the Nifty’s.

AMBUJACEM Technical Chart

Oscillators RSI and CMO are in no man’s land suggesting no direction for the stock.

The MACD line and the signal line are moving close to each other – directionless. Also, both long-term and short-term GMMA lines are too constricted to give any signal. Short-term technical gave a 18×4 bearish signal for the stock yesterday.

AMBUJACEM Correlation Chart

AMBUJACEM’s average correlation of 0.52 with the Nifty is positive. The stock will replicate the movements of Nifty. [stockquote]NIFTYBEES[/stockquote]

AMBUJACEM Volatility Chart

AMBUJACEM has a historical volatility in the range of 0.3 to 0.8. The scrip’s volatility currently is in the lower range.

To conclude, given these technicals, the stock is a short-term HOLD. For the long-term a directional bet could be made once we see a break-out of the pennant so we suggest a long-term HOLD.

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Analysis: LICHSGFIN

Today’s pick is LICHSGFIN [stockquote]LICHSGFIN[/stockquote]. The stock has been on a constant uptrend for the entire year coupled with many corrections. It touched its 52 week high of Rs. 287 in October. The stock is currently hovering around the same levels after experiencing a double bottom around Rs. 240 levels. In the last three months, the stock is up 6% vs. 8% of the Nifty’s.

LICHSGFIN technical chart

Oscillators RSI and CMO are deep inside the over-bought territory – a bearish sign for the scrip.

The MACD line and the signal line are moving parallel to each other not suggesting any direction for the stock. Also, both long-term and short-term GMMA lines are wide open, giving an extremely bullish signal.

LICHSGFIN correlation plot

LICHSGFIN’s average correlation of 0.62 with the Nifty is positive and strong. The stock will be replicating the movements of Nifty. [stockquote]NIFTYBEES[/stockquote]

LICHSGFIN volatility chart

LICHSGFIN has a historical volatility in the range of 0.3 to 0.8. The scrip’s volatility currently is in the lower range.

LICHSGFIN Fundamental

From a fundamental point of view, Globe Capital has a BUY on LICHSGFIN. The decrease in NPA ratio and an outlook to attain a higher net interest margin are expected to boost company’s profit organically.

To conclude, given these technicals, the stock is a short-term SELL. For the long-term the stock does not seem to have a visible resistance level (if it clears 287, the sky is the limit.) Also the fundamentals are bullish: long-term BUY

 

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Quantitative Option Strategies

The markets have been all around the place in the last few week. And this has created a lot of confusion in the minds of traders too. So, how do you make money in such scenarios?

The best way to be in the markets right now is to get exposure in the derivatives market. Here are a few options trade that made 33%, 19% and 7% when the markets went nowhere last week.

 ACC options position

LT Options position

BATAINDIA Options position

Even when the respective stocks were -1%, -2% and -3.3% there options position have made much more profits.

The ideas based on the algorithms helped us take these positions and carve out the profits even under such market conditions. You too can use these ideas to get more greens in your portfolio.

Open a StockViz Demat account today and go Pro!

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