Tag: technical analysis

Analysis: RELINFRA

Abhishek February 13, 2013February 13, 2013

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.

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’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 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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Categories Your Money Tags RELINFRA, technical analysis

Analysis: SUZLON

Abhishek February 12, 2013February 12, 2013

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.

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’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 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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Categories Your Money Tags SUZLON, technical analysis

Analysis: MTNL (MTE)

Abhishek February 11, 2013February 11, 2013

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.

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’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 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.

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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Categories Your Money Tags MTNL, technical analysis

Analysis: RCOM

Abhishek February 8, 2013February 8, 2013

Today’s pick is RCOM [stockquote]RCOM[/stockquote]. The stock started saw a rush to Rs. 110 levels in the starting of the year, but could not sustain the level, and started its downtrend to reach Rs. 50 by September. Since then the stock has been in an uptrend. In the last three months, the stock has moved +27% vs. +4% of the Nifty’s.

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. Short-term technical just saw 18×9 bearish cross-over.

RCOM’s average correlation with the Nifty is 0.62 which is positive and strong. The scrip will be replicating movement of Nifty closely. [stockquote]NIFTYBEES[/stockquote]

RCOM has a historical volatility in the range of 0.4 to 1.0. The scrip’s volatility is currently in the middle of the range.

Given these technicals and divergences we suggest a short-term sell. For the long-term, we could take a call given the stocks ability to stick to the trend-line in place. However trailing stop-losses will be of help in case sudden trend-reversal were to take place.

Read what experts have to say about the Indian telecom sector here.

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Categories Your Money Tags RCOM, technical analysis

Analysis: IDEA

Abhishek February 7, 2013February 7, 2013

Today’s next pick is IDEA [stockquote]IDEA[/stockquote]. The stock saw a range bound movement till April. After a downward break out of the range, the stock moved to Rs. 75 levels to find support till September. Since then the stock is in an uptrend, and it saw a 52 week high of Rs. 123 in mid-January. In the last three months, the stock has moved +20% vs. +4% of the Nifty’s.

Oscillator RSI and CMO are in no-man’s land. 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. Although, Long-term GMMA lines are well spread out, and hence are giving a bullish sign for the long-term.

IDEA’s average correlation with the Nifty is 0.41 which is positive. The scrip will be replicating movement of Nifty. [stockquote]NIFTYBEES[/stockquote]

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

Given these technicals, we suggest a short-term sell. For the long-term, we suggest a buy. However trailing stop-losses will be of help in case sudden trend-reversal were to take place.

Read what experts have to say about the Indian telecom sector here.