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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Analysis: MTNL (MTE)

Today’s pick is MTNL [stockquote]MTNL[/stockquote]. The stock started saw a triple-top at the beginning of the year at Rs 35, and then moved down to find support around Rs. 22. After hovering around for a couple of weeks it started its up-move to see 52 week’s high of Rs 45 around September. Since then the stock has been on a slide, waiting to find any support. In the last three months, the stock has moved -13% vs. +4% of the Nifty’s.

MTNL technical analysis chart

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

The MACD line and the signal line are moving parallel to each other and suggest the short –term downtrend to continue. Also, Long-term GMMA lines are starting to converge given the range-bound movement of the stock.

MTNL Correlation chart

MTNL’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]

MTNL Volatility chart

MTNL 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.

MTNL Analysts coverage

Analysts continue to be bearish about the stock, and are distributed amongst underperform and sell calls.

Given these technicals and analysts call, we suggest a short-term sell. For the long-term, we could take a call based on the behavior of GMMA lines.

Read experts advice on the sector here.

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