Tag: technical analysis

Analysis: EICHERMOT

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Today’s pick is EICHERMOT [stockquote]EICHERMOT[/stockquote]. The stock has been on an uptrend throughout the year with a 2 month correction period during the middle. The stock experienced its 52-week high of Rs. 3,000 a week ago and is undergoing consolidation currently. In the last three months, the stock has moved +25% vs. +5% of the Nifty’s.

EICHERMOT 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 9×4 bearish cross-over combined with a bearish Gravestone doji.

The MACD line is moving close to the signal line and the dropping histogram levels are suggesting a bearish outlook. The long-term GMMA lines are well dispersed and are suggesting a long term bullish move for the scrip. Also, the stock just saw a close below the center line of Bollinger band, which is short-term bullish.

EICHERMOT correlation chart

EICHERMOT’s average correlation with the Nifty is 0.42, which is positive. The scrip will be replicating the movement of Nifty. [stockquote]NIFTYBEES[/stockquote]

EICHERMOT volatility chart

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

Given these technicals, we suggest a short-term Hold and a long-term Buy for the script. 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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Analysis: HINDUNILVR

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Today’s pick is HINDUNILVR [stockquote]HINDUNILVR[/stockquote]. The stock has been on an uptrend through-out the year. The stock experienced its 52-week high of Rs. 580 in mid-October and then corrected itself to find support at Rs. 525. Since then the stock is undergoing a pennant formation. In the last three months, the stock has moved -6% vs. +3% of the Nifty’s.

HINDUNILVR technical analysis chart

Oscillators RSI and CMO are in no man’s land unable to give any directional suggestion. Short-term technical just saw a 9×18 bullish cross-over.

The MACD line is moving close to the signal line and the dropping histogram levels are suggesting an imminent bearish crossover for the line. The long-term and short-term GMMA lines are very constrained and hence are not suggesting any direction to the scrip.

HINDUNILVR correlation chart

HINDUNILVR’s average correlation with the Nifty is 0.23, which is positive. The scrip will be replicating the movement of Nifty. [stockquote]NIFTYBEES[/stockquote]

HINDUNILVR volatility chart

HINDUNILVR has a historical volatility in the range of 0.3 to 0.7. The scrip’s volatility currently is in the lower end of the range.

Given these technicals, we suggest a short-term and a long-term watch for the script. The investor is advised to be on a lookout for a decisive breakout of the pennant in either direction to make any directional call.

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Analysis: JETAIRWAYS

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Today’s pick is JETAIRWAYS [stockquote]JETAIRWAYS[/stockquote]. The stock has been on an uptrend through-out the year, but it picked up momentum since November and it continues to rise. The stock experienced its 52-week high of Rs. 639 in mid-December and is headed towards the same again after a slight correction. In the last three months, the stock has moved a whopping +59% vs. +3% of the Nifty’s.

JETAIRWAYS technical analysis chart

Oscillators RSI and CMO are close to the over-bought territory but historical levels of these indicators suggest that the stock has more room to run before it corrects. Besides, short-term 4×9 and 4×18 just saw a bullish cross-over.

The MACD line is moving close to the signal line and the rising histogram levels are suggesting an imminent bullish crossover of the line. The long-term GMMA lines are well dispersed, giving out a very positive outlook for the stock.

JETAIRWAYS Correlation chart

JETAIRWAYS’s average correlation with the Nifty is 0.56, which is positive and strong. The scrip will be replicating the movement of Nifty. [stockquote]NIFTYBEES[/stockquote]

JETAIRWAYS volatility chart

JETAIRWAYS has a historical volatility in the range of 0.4 to 1.2. The scrip’s volatility currently is in the higher end of the range and should act as point of caution for traders in case the divergences in RSI and CMO come into play.

Given these technicals, we suggest a short-term and a long-term BUY for the scrip. It’s a good idea to ride the momentum with trailing stop-losses in place to book profits if a trend-reversal were to take place.

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Analysis: WIPRO (WIT)

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Today’s pick is WIPRO [stockquote]WIPRO[/stockquote]. The stock began 2012 with a slight upside move to see resistance around the Rs. 450 levels. After testing that resistance for 2 months, the stock started moving downwards till it reached Rs. 340. This acted as support for the stock in the later months as well. And post November, the stock has been on an up-trend. In the last three months, the stock has moved +10% vs. +5% of the Nifty’s.

WIPRO Technical analysis chart

Oscillators RSI and CMO are closing towards the over-bought territory.

The MACD line is moving above the signal line in a bullish mode confirmed by the increasing histogram levels. The long-term GMMA lines are moving very close to each other unable to suggest any bias for the long-term. Although, the short-term GMMA lines are suggesting a bullish move given the expansion of the lines.

WIPRO correlation chart

WIPRO’s average correlation with the Nifty is 0.56, which is positive and strong. The scrip will be replicating the movement of Nifty. [stockquote]NIFTYBEES[/stockquote]

WIPRO volatility chart

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

WIPRO Analyst coverage

Analysts are kind of bullish for the stock, given the high average ratings from various analysts. Better earnings this quarter could add on to the glory of the stock.

Given these technicals, we suggest a short-term hold and a long-term BUY for the scrip. 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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Analysis: MUTHOOTFIN

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Today’s pick is MUTHOOTFIN [stockquote]MUTHOOTFIN[/stockquote]. The stock began 2012 with a small uptrend, which ended very quickly after seeing highs of Rs. 180. The downwards movement that followed lasted till September. The stock has since been on an up-trend and touched its 52-week high just yesterday. In the last three months, the stock has moved +26% vs. +5% of the Nifty’s.

MUTHOOTFIN Technical analysis chart

Oscillators RSI and CMO are closing towards the over-bought territory. The short-term technical flashed a 4×9 Bullish cross-over for the scrip.

The MACD line has just penetrated the signal line from below to give out a bullish signal. The long-term GMMA lines are experiencing expansion which suggests an upward movement to the stock for a longer term horizon.

MUTHOOTFIN correlation chart

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

MUTHOOTFIN volatility chart

MUTHOOTFIN 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 scrip. With trailing stop-losses in place traders can book profits if a trend-reversal were to take place.

Disclaimer: The analyst holds this stock in his portfolio.

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