Tag: technical analysis

Here is the 3rd part of the Call Reviews, where we come forward and discuss the performance of our calls made as a part of daily analysis posts that we have been posting over the last 6 months. We are looking at five calls in each post. Remember again we are only looking at the short-term calls.

For Wipro Ltd. [stockquote]WIPRO[/stockquote] in this post we gave a buy call. Its 5 day performance was +1.7%.

For Dr. Reddy Laboratories Ltd. [stockquote]DRREDDY[/stockquote] in the next post we asked to hold. The stock was moved -1.2% next 5 days.

For Karnataka Bank [stockquote]KTKBANK[/stockquote], in the following week’s post we gave a hold call. The stock had moved +2.45% in the next 5 days.

In the next post, we picked ONGC Ltd. [stockquote]ONGC[/stockquote] and gave a sell call. The stock moved -5% over the next 5 days.

Our last pick of the day, for Larsen and Toubro Ltd. [stockquote]LT[/stockquote] in this post we gave a hold call. The stock moved -1.9% over the next 5 days period.

This gives our cumulative calls an accuracy level of 66.7%.

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Here is the 2nd part of the Call Reviews, where we come forward and discuss the performance of our calls made as a part of daily analysis posts that we have been posting over the last 6 months. We are looking at five calls in each post. Remember again we are only looking at the short-term calls.

For Infosys Ltd. [stockquote]INFY[/stockquote] in this post we gave a buy call. Its 5 day performance was -2.5%.

For Tata Consultancy Services [stockquote]TCS[/stockquote] in the next post we asked to hold. The stock was flat over the next 5 days.

For Asian Paints [stockquote]ASIANPAINT[/stockquote], in the following week’s post we gave a hold call. The stock had moved -0.5% in the next 5 days.

In the next post, we picked Raymonds Ltd. [stockquote]RAYMOND[/stockquote] and gave a hold call. The stock moved +2.3% over the next 5 days.

Our last pick of the day, for Tata Steel Ltd. [stockquote]TATASTEEL[/stockquote] in this post we gave a hold call. The stock moved +2.5% over the next 5 days period.

This gives our cumulative calls an accuracy level of 70%.

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This is the part where we come forward and discuss the performance of our calls made as a part of daily analysis posts that we have been posting over the last 6 months. We would take on this journey by looking at five calls in each post beginning with our first post.

In our very first post for ACC Ltd [stockquote]ACC[/stockquote] we gave a buy call for the short term. Its 5 day performance was +2.5%.

For State Bank of India [stockquote]SBIN[/stockquote] in the next post we gave a sell call for the short term. The stock was down -3.2% in the next 5 days.

For ITC Ltd [stockquote]ITC[/stockquote], the following week’s post we gave a buy call for the short term. The stock had moved +2.6% in the next 5 days.

In the next week, we picked Reliance Ltd [stockquote]RELIANCE[/stockquote] and gave a short-term buy call in this post. The stock moved +0.7% over the next 5 days time.

Our last pick of the day, for DLF Ltd [stockquote]DLF[/stockquote] in this post we gave a buy call, but it’s the first time that we had to see a negative. The stock went down -1.6% over the next 5 days period.

This gives our calls an accuracy level of 80%.

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Today’s pick is DCB [stockquote]DCB[/stockquote]. The stock started the year with an upmove to Rs. 52, and following resistance, fell to Rs. 36 levels. The stock has been in this channel for the entire year now. It is currently on the lower side, and hence it can be said that it will try to reach the top once again. In the last three months, the stock moved -14% vs. a flat Nifty.

Oscillator RSI and CMO are currently in no-man’s land. The stock is currently trading in the middle of the Bollinger bands. Short-term technical just saw a 9×18 bullish cross-over.

The MACD line and signal line are moving very close to each other in the positive direction, but the histogram levels are dropping. Also, the Long-term GMMA lines are contracting to reverse the direction of the move, giving out a positive sign for the stock.

DCB’s average correlation with the Nifty is 0.64, which is positive and quite strong. The scrip will be closely replicating movement of Nifty. [stockquote]NIFTYBEES[/stockquote]

DCB has a historical volatility in the narrow range of 0.4 to 1.0. The scrip’s volatility is currently in the lower end of the range.

Globe capital has a buy call based on fundamentals:

· The Bank reported Net Profit of Rs. 26.9 Cr. in Q3 FY 2013 against Rs. 15.6 Cr. last year

· Improved asset quality

· Focus on building low cost franchise

· Robust promoter background and experienced management team

Given the technicals, we suggest a short-term BUY. A longer term call could be taken based on stocks behavior near Rs. 52 levels. Also, it is advisable to have a tight trailing stop-losses level to book profits in case of a sudden trend-reversal.

For a better picture of the NBFC sector as a whole, you can look at what the experts have to say here and here.

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