Tag: technical analysis

Analysis: TATACOFFEE

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.

TATACOFFEE technical analysis chart

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 correlation chart

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 volatility chart

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.

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Analysis: GLAXO

Today’s pick is GLAXO [stockquote]GLAXO[/stockquote]. The uptrend that started in the beginning of the year lasted till April touching the highs of Rs. 2,300, post which the stock moved back to the support level of Rs. 1,925 in a month. The up-move that started later saw a resistance around Rs. 2,200 levels and stock corrected itself back to the support levels by October. Since then the stock is in an up-trend. In the last three months, the stock has moved +10% vs. +7% of the Nifty’s.

GLAXO technical analysis chart

Oscillators RSI and CMO are deep into the over-bought territory, giving out a bearish signal for the stock. Long term SMA’s just saw a 50×200 bullish golden cross-over.

The MACD line is moving towards the signal line, accompanied by the falling histogram levels such movement is suggesting an imminent bearish move for the stock. The long-term GMMA lines are well dispersed out, suggesting a bullish outlook for the scrip. However, short-term GMMA lines are starting to move towards each other giving a bearish outlook for the short term .

GLAXO correlation chart

GLAXO’s average correlation with the Nifty is 0.13 is positive. The scrip will not be replicating the movement of Nifty closely. [stockquote]NIFTYBEES[/stockquote]

GLAXO volatility chart

GLAXO has a historical volatility in the range of 0.2 to 0.5. 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 golden cross signal 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 correction is seen around the resistance levels.

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Analysis: SAIL

Today’s pick is SAIL [stockquote]SAIL[/stockquote]. The stock started the year with a nick of an uptrend to see the Rs. 115 levels but dropped on its chin due to lost momentum soon thereafter to see itself around Rs. 80 levels by September. After a couple of trials to move up, the stock finally broke the down-trend in place during late December and is currently trading at Rs. 90. In the last three months, the stock has moved +12% vs. +6% of the Nifty’s.

SAIL technical analysis chart

Oscillators RSI and CMO are in no man’s land unable to suggest any direction. The stock just saw a short-term 9×4 bearish cross-over.

The MACD line is moving towards the signal line, accompanied by the falling histogram levels such movement is suggesting an imminent bearish move for the stock. The long-term GMMA lines are well dispersed out, suggesting a bullish outlook for the scrip. However, the sudden decrease in the prices has led to a constrained movement of short-term GMMA lines giving a bearish signal.

SAIL Correlation chart

SAIL’s average correlation with the Nifty is 0.67 is positive and strong. The scrip will be closely replicating the movement of Nifty. [stockquote]NIFTYBEES[/stockquote]

SAIL volatility chart

SAIL has a historical volatility in the range of 0.3 to 0.7. The scrip’s volatility currently is in the middle of the range.

Given these technicals, we suggest a short-term Sell. Looking at the well dispersed GMMA lines we suggest a long-term Buy for the script with a keen eye around Rs. 100 levels for any resistance.

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Analysis: DRREDDY (RDY)

Today’s pick is DRREDDY [stockquote]DRREDDY[/stockquote]. The stock started the year with an uptrend to see the Rs. 1,800 levels. After hovering for a week around the levels it corrected itself to Rs. 1,525 level. Since then the stock has been on an uptrend and it just saw its 52-week’s high of Rs.1,927 during last week. In the last three months, the stock has moved +10% vs. +5% of the Nifty’s.

DRREDDY technical analysis chart

Oscillators RSI and CMO are in the over-bought territory suggesting a short-term correction for stock. The stock just experienced a bullish Dragonfly Doji.

The MACD line is moving towards the signal line, accompanied by the falling histogram levels such movement is suggesting a short-term bearish move for the stock. The long-term and short-term GMMA lines are well dispersed and are suggesting a bullish outlook for the scrip.

DRREDDY correlation chart

DRREDDY’s average correlation with the Nifty is 0.34 is positive. The scrip will be replicating the movement of Nifty. [stockquote]NIFTYBEES[/stockquote]

DRREDDY volatility chart

DRREDDY has a historical volatility in the range of 0.25 to 0.45. The scrip’s volatility currently is in the lower end of the range.

RDY

Analysts are quite positive about the scrip which is a very good sign for the stock. Traders are advised to keep an eye on the forthcoming results as a drift from the analysts expectation can bring about a drastic change for the stock.

Given these technicals, we suggest a short-term Hold. Also looking at the up-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.

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Analysis: SUZLON

Today’s pick is SUZLON [stockquote]SUZLON[/stockquote]. The stock started the year with a steep uptrend to blow past Rs. 30. It hovered around that point for a month, and finally gave up the momentum and slid all the way down to Rs. 15. However, it looks like it is at the beginning of an uptrend, having broken the pennant it was stuck in since December. In the last three months, the stock has moved +28% vs. +5% of the Nifty’s.

SUZLON technical analysis chart

Oscillators RSI and CMO are in no man’s land and are not signaling any directional move. Short-term technical just saw a 4×9 and 4X18 bullish cross-over.

The MACD line is moving close to the signal line but the increasing histogram levels are suggesting a bullish outlook. The long-term GMMA lines are starting to flag out suggesting an upcoming long term bullish move for the scrip.

SUZLON correlation chart

SUZLON’s average correlation with the Nifty is 0.57, which is positive. The scrip will be replicating the movement of Nifty. [stockquote]NIFTYBEES[/stockquote]

SUZLON volatility chart

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

Given these technicals, we suggest a short-term and a long-term Buy for the script. Also, looking at the volatile history of the stock, we suggest traders to use trailing stop-losses in order to book profits if a trend-reversal were to take place.

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