Tag: technical analysis

Analysis: PETRONET

Abhishek February 21, 2013February 21, 2013

Today’s pick is PETRONET [stockquote]PETRONET[/stockquote]. The stock saw a double top in the starting of the year around Rs 175 levels, and slipped down to find support at Rs. 125 levels by June. It then started moving up and found resistance again around the same levels, and is currently withdrawing back. In the last three months, the stock has moved -1% vs. +5% of the Nifty’s.

Oscillator RSI and CMO are in no man’s land. The stock is trading at the top of Bollinger band giving a short-term bearish bias. Short-term technicals saw a 4×9 and 4×18 bullish cross-over accompanied with a Dragonfly bullish doji.

The MACD line has penetrated the signal line in a bullish manner a couple of days ago. However, Long-term and short-term GMMA lines can be seen inverted in a bearish manner given the downward movement of the stock.

PETRONET’s average correlation with the Nifty is +0.49 which is positive. The scrip will be replicating movement of Nifty. [stockquote]NIFTYBEES[/stockquote]

PETRONET has a historical volatility in the range of 0.3 to 0.9. The scrip’s volatility is currently in the lower end of the range.

Given these technicals, we suggest a short-term buy. For the long-term we suggest to take a call based upon the expansion of the long-term GMMA lines and stocks behavior around its resistance levels. 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 PETRONET, technical analysis

Analysis: COLPAL

Abhishek February 20, 2013February 20, 2013

Today’s pick is COLPAL [stockquote]COLPAL[/stockquote]. The stock has been on an uptrend for most part of the year. The stock experienced its 52 week high of Rs. 1,580 in December but since then the stock has been moving downwards retracing the gains. In the last three months, the stock has moved +2% vs. +5% of the Nifty’s.

Oscillator RSI and CMO are close to the over-sold territory. The stock is trading in the middle of a narrowing Bollinger band giving no directional bias.

The MACD line has just penetrated the signal line in a bullish manner. However, Long-term and short-term GMMA lines can be seen inverted in a bearish manner given the downward movement of the stock.

COLPAL’s average correlation with the Nifty is +0.26 which is positive but weak. The scrip will not be replicating movement of Nifty closely. [stockquote]NIFTYBEES[/stockquote]

COLPAL 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 and hence not a concern for the traders.

Given these technicals, we suggest a short-term buy. For the long-term we suggest to take a call based upon the expansion of the long-term GMMA lines. 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 COLPAL, technical analysis

Analysis: GOLDBEES

Abhishek February 19, 2013February 19, 2013

Today’s pick is GOLDBEES [stockquote]GOLDBEES[/stockquote]. The ETF started the year with an uptrend to reach 52 weeks high of Rs. 3,100 levels. This level proved to be a resistance, and the ETF saw a formation of double top by the end of November. Since then the ETF is in a continuous down-trend. In the last three months, the ETF has moved -7% vs. +5% of the Nifty’s.

Oscillator RSI and CMO have been trading close to the over-sold territory since long, and are not giving any directional bias. The ETF is trading in the lower end of a very compact Bollinger band giving no directional bias. Short-term technical just saw 9×4 bearish cross-over.

The MACD line and 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.

GOLDBEES’s average correlation with the Nifty is -0.02 which is negative. The scrip will not be replicating movement of Nifty. [stockquote]NIFTYBEES[/stockquote]

GOLDBEES has a historical volatility in the range of 0.1 to 0.4. 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 could take a call based on the ETF’s behavior around Rs.2,700 support levels.

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Categories Your Money Tags GOLDBEES, technical analysis

Analysis: STER(SLT)

Abhishek February 18, 2013February 18, 2013

Today’s pick is STER [stockquote]STER[/stockquote]. The stock started the year with a rush to Rs. 140 levels, and after peaking off, it started its descent. The stock found a support around Rs 90 levels. Since then the stock has tested the support many times. Also, the stock seems to have found resistance around Rs. 120, which was tested twice in December, and stock again plummeted to the support levels. In the last three months, the stock has moved +3% vs. +5% of the Nifty’s.

Oscillator RSI and CMO are closing in towards the over-sold territory. The stock is trading in the lower end of a very large Bollinger band range giving bullish bias.

The MACD line and signal line are moving parallel to each other, unable to give any outlook. Stagnating histogram levels do suggest forthcoming trend reversal. Also, Long-term and short-term GMMA lines are running close to each other and are not giving out any directional bias.

STER’s average correlation with the Nifty is +0.71 which is positive and strong. The scrip will be replicating movement of Nifty closely. [stockquote]NIFTYBEES[/stockquote]

STER 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 and hence not a concern for the traders.

Given these technicals, we suggest a short-term sell. For the long-term we suggest to take a call based upon its behavior around the support levels.

Sterlite net profit up 30 % at Rs.1,191 crore

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Categories Your Money Tags STER, technical analysis

Analysis: AUROPHARMA

Abhishek February 14, 2013February 14, 2013

Today’s pick is AUROPHARMA [stockquote]AUROPHARMA[/stockquote]. The stock spent half of the year in a channel between Rs. 100 and Rs. 140. It broke out bullishly in August, and saw its 52 week high of Rs. 200 in January. Since then the stock has been moving downwards. In the last three months, the stock has moved +2% vs. +6% of the Nifty’s.

Oscillator RSI and CMO are closing in towards the over-sold territory. The stock is trading in the lower end of a very compact Bollinger band giving no directional bias. Short-term technical just saw 9×4 bearish cross-over.

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.

AUROPHARMA’s average correlation with the Nifty is +0.48 which is positive. The scrip will be replicating movement of Nifty. [stockquote]NIFTYBEES[/stockquote]