Had to get rid of BRIGADE because of its continuous fall. Was waiting for an exit point, which ultimately never came. Having trailing stop-loss would have helped definitely.
Hope for a good budget to make the next set of investments.
Today’s pick is PNB [stockquote]PNB[/stockquote]. The stock saw a double top at the beginning of the year and started its descent to Rs. 700 levels. It then was range bound between Rs. 700 – Rs. 850 from June to November. In December it saw a bullish breakout of the range, but scrip found strong resistance around Rs. 900 levels to pull it back to Rs. 850 levels. In the last three months, the stock moved -2% same as that of the Nifty’s.
Oscillator RSI and CMO are in no man’s land. The stock is trading in the lower end of a compact Bollinger band giving out a bullish signal. Short-term technical saw a 9×4 bearish signal a couple of days ago.
The MACD line and signal line are moving parallel to each other without giving any directional bias. Also, Long-term and short-term GMMA lines are currently inverted and are contracting giving a bearish bias for the stock.
PNB’s average correlation with the Nifty is 0.68 which is positive and strong. The scrip will be replicating movement of Nifty. [stockquote]NIFTYBEES[/stockquote]
PNB has a historical volatility in the range of 0.3 to 0.6. The scrip’s volatility is currently in the higher end of the range.
Given these technicals, we suggest a short-term sell. A long-term Watch is suggested given the range bound movement. A call could be taken depending on the directional break-out of the range.
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Today’s pick is SIEMENS [stockquote]SIEMENS[/stockquote]. The stock saw a double top at the beginning of the year, to start its descent to Rs. 650 levels. It then was range bound between Rs. 650 – Rs. 750 for June to January. In January it saw a bearish breakout of the range, and has since been headed south. In the last three months, the stock moved -22% vs. -2% of the Nifty’s.
Oscillator RSI and CMO are deep into over-sold territory. The stock is trading in the lower edge of a very broad Bollinger band.
The MACD line and signal line are moving parallel to each other without giving any directional bias. Also, Long-term and short-term GMMA lines are currently inverted and expanding giving a bearish bias for the stock.
SIEMENS’s average correlation with the Nifty is 0.58 which is positive and strong. The scrip will be replicating movement of Nifty. [stockquote]NIFTYBEES[/stockquote]
SIEMENS has a historical volatility in the range of 0.2 to 0.5. The scrip’s volatility is currently in the lower end of the range.
Given these technicals, we suggest a short-term Buy and a long-term Sell. However, as the scrip is deep in over-sold territory, I suspect that a move back is in waiting for the short-term.
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Today’s pick is BAJAJHLDNG [stockquote]BAJAJHLDNG[/stockquote]. The stock hurried to to Rs. 800 point in 15 days at the start of the year. It then hovered around the level until September before a bullish breakout of the range. Since then the stock has been on an up-trend and saw its 52 week high of Rs. 1050 in January. In the last three months, the stock has moved +10% vs. a flat Nifty.
Oscillator RSI and CMO are in no man’s land. The stock is trading in the middle of a very narrow Bollinger band not giving any short-term directional bias. Short-term technicals saw a 4×9 bullish cross-over.
The MACD line and signal line are moving very close to each other without giving any directional bias. Also, Long-term and short-term GMMA lines can be seen contracting, unable to give any direction to the stock. The stock is again moving in a range.
BAJAJHLDNG’s average correlation with the Nifty is -0.01 which is negative. The scrip will not be replicating movement of Nifty. [stockquote]NIFTYBEES[/stockquote]
BAJAJHLDNG has a historical volatility in the range of 0.2 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 long-term buy would be a good idea given the trend-line in place. However, It is suggested to have broad trailing stop-losses to capture the upside in case sudden trend-reversal were to take place.
Sold SAIL [stockquote]SAIL[/stockquote] due to trailing stop loss. The whole portfolio is currently in Red.
Also, there is a stop loss order for BRIGADE and GEOMETRIC at Rs. 75.00 and Rs. 100.00 respectively.
Lets see what the coming days have in store for the portfolio.