Tag: technical analysis

Analysis: SYMPHONY

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Today’s pick is SYMPHONY [stockquote]SYMPHONY[/stockquote]. The stock started the year with a range bound movement, which broke out on the downside to reach Rs. 200 levels. After finding support there, the stock started its up-move to see its 52 weeks high of Rs. 455 in October. It then retraced the gains to find support at Rs. 300 levels. Since then the stock has been on an up-trend. In the last three months, the stock moved +21% vs. a flat Nifty.

SYMPHONY Technical Analysis Chart

Oscillator RSI and CMO are crawling towards over-bought territory. The stock has just broken out of a channel and is currently trading at the top of the Bollinger bands.

The MACD line and signal line are moving very close to each other, not giving any direction to the stock. Also, the Long-term and short-term GMMA lines are contracting, unable to provide any outlook for the stock.

SYMPHONY correlation chart

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

SYMPHONY Volatility chart

SYMPHONY has a historical volatility in the narrow range of 1 to 4. The scrip’s volatility is currently in the lower end of the range.

Globe capital has a buy call based on fundamentals:

· Q2FY2013 financial performance – 48% growth in PAT

· Large dealer-distribution network

· Exports to boost sales in near term

· Increasing temperature and global warming to fuel demand for air coolers

· Industrial air cooling – growth driver to profitability

Given the technicals, we suggest a short-term and a long-term BUY. Also, it is advisable to have a relaxed trailing stop-losses level to book profits in case of a trend-reversal.

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Analysis: DRREDDY

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Today’s pick is DRREDDY [stockquote]DRREDDY[/stockquote]. The stock started the year with an up-move to Rs. 1,800 levels. After experiencing resistance at those levels, the stock started its move down. It then saw head-and-shoulders bottom formation during May to July, and since then it has been on an up-trend. It saw the 52 weeks high of Rs. 1,970 in February, but since then was on a down-trend to find support on the trend-line. In the last three months, the stock moved -1% vs. +1 of the Nifty’s.

DRREDDY technical analysis chart

Oscillator RSI and CMO are in no man’s land. The stock is currently trading in the middle of the Bollinger bands. Short-term technical just saw 4X9 and 4X18 bullish SMA cross-over combined with a Dragonfly bullish Doji yesterday.

The MACD line has just penetrated the signal line in a bullish manner. However, the Long-term and short-term GMMA lines are contracting, unable to provide any outlook for the stock.

DRREDDY correlation chart

DRREDDY’s average correlation with the Nifty is 0.35 which is positive. The scrip will be replicating movement of Nifty. [stockquote]NIFTYBEES[/stockquote]

DRREDDY volatility chart

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

Given these technicals, we suggest a short-term BUY. A long-term BUY is also suggested based on the support provided by the trend-line. However, it is advisable to have a relaxed trailing stop-losses level to book profits in case of a trend-reversal.

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Analysis: ICICIBANK (IBN)

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Today’s pick is ICICIBANK [stockquote]ICICIBANK[/stockquote]. The stock started the year with a downward move to reach Rs. 800 levels. After finding support for a couple of weeks the stock started its up-ward movement. It saw the 52 weeks high of Rs. 1,210 in February, but since then was on a down-trend to find support on the trend-line. In the last three months, the stock moved +2% same as that of the Nifty’s.

ICICIBANK technical analysis chart

Oscillator RSI and CMO are in no man’s land. The stock is currently trading in the upper side of Bollinger bands. Short-term technical just saw 4X9 and 4X18 bullish SMA cross-over.

The MACD line has just penetrated the signal line in a bullish manner. However, the Long-term and short-term GMMA lines are contracting, unable to provide any outlook for the stock.

ICICIBANK correlation chart

ICICIBANK’s average correlation with the Nifty is 0.82 which is positive and very strong. The scrip will be closely replicating movement of Nifty. [stockquote]NIFTYBEES[/stockquote]

ICICIBANK volatility chart

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

ICICIBANK analysts coverage

Analysts have positive expectations regarding this stock. Less than expected earnings might hit the street expectations in the coming reviews and might impact the stock as well.

Given these technicals, we suggest a short-term Hold. A long-term call could be taken depending on the price action around Rs. 1,200 levels. It is also suggested to have tight trailing stop-losses level to book profits in case of a sudden trend-reversal.

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Analysis: GLENMARK

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Today’s pick is GLENMARK [stockquote]GLENMARK[/stockquote]. The stock has been on an uptrend since the start of the year. It saw its 52 weeks high of Rs. 552 in January, and since then has been on a pennant formation. The decreasing volume levels are suggesting that it is soon going to decide on its next move. In the last three months, the stock moved +11% Vs. -1% of the Nifty’s.

GLENMARK technical analysis chart

Oscillator RSI and CMO are in no man’s land. The stock is currently trading in the middle of the Bollinger bands. Short-term technical just saw a bullish dragonfly doji and a bearish 18×4 SMA cross-over.

The MACD line is moving along the signal line since a month, not suggesting any directional move for the stock. Also, the Long-term and short-term GMMA lines are contracting, unable to provide any outlook for the stock.

GLENMARK correlation chart

GLENMARK’s average correlation with the Nifty is 0.33 which is positive. The scrip will be replicating movement of Nifty. [stockquote]NIFTYBEES[/stockquote]

GLENMARK volatility chart

GLENMARK 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 Hold. A long-term call could be taken depending on the directional breakout of the pennant in formation. It is also suggested to have a tight trailing stop-losses level to book profits in case of a sudden trend-reversal.

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Analysis: SUNPHARMA

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Today’s pick is SUNPHARMA [stockquote]SUNPHARMA[/stockquote]. The stock has been on an uptrend since the start of the year. After finding resistance at Rs. 550 for a couple of months, it started its up move.in June. It saw its 52 weeks high of Rs. 826 towards February end. Since then it is trending down. In the last three months, the stock moved +11% Vs. -2% of the Nifty’s.

SUNPHARMA Technical Analytis Chart

Oscillator RSI and CMO are currently drawing back from the over-bought territory; a corrective move. The stock is currently trading in the middle of the Bollinger bands.

The MACD line has just punctured the signal line in a bearish move accompanied with a downward moving histogram is signaling a short-term trend reversal. However, the Long-term GMMA lines are expanding suggesting a bullish outlook for the long-term.

SUNPHARMA correlation chart

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

SUNPHARMA volatility chart

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

Given these technicals, we suggest a short-term SELL. A long-term BUY is suggested given the long-term trend-line in place. It is also suggested to have a relaxed trailing stop-losses levels to book profits in case of a trend-reversal.

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