{"id":222009,"date":"2012-10-26T10:30:51","date_gmt":"2012-10-26T05:00:51","guid":{"rendered":"http:\/\/stockviz.biz\/index.php\/?p=222009"},"modified":"2012-10-26T10:30:52","modified_gmt":"2012-10-26T05:00:52","slug":"analysis-asianpaint","status":"publish","type":"post","link":"https:\/\/stockviz.biz\/index.php\/2012\/10\/26\/analysis-asianpaint\/","title":{"rendered":"Analysis: ASIANPAINT"},"content":{"rendered":"

Today\u2019s pick is [stockquote]ASIANPAINT[\/stockquote]. The stock has made a 24% since the 3130 levels of October 2011. <\/p>\n

The up-trend since January this year has seen resistance around the 4000 levels twice already; this will act as a near-term resistance level. The longer-term chart shows a support around 2500. <\/p>\n

\"image\"<\/a>  <\/p>\n

The stock is currently exhibiting a long-term flag formation. A decisive breakout above the 4000 levels can initiate the next leg of up-trend. <\/p>\n

\"image\"<\/a> <\/p>\n

Oscillators RSI<\/a> and CMO<\/a> are at currently at 52 and 6. At this mid-level RSI, the stock has still got around 20 points to reach either oversold or overbought levels. The current mid-range CMO is also unable to suggest any imminent move. <\/p>\n

MACD<\/a> line and signal line are also getting in a twist. The static histogram<\/a> levels are adding onto the trendless-ness of the scrip. <\/p>\n

The GMMA<\/a> chart although seems to direct a good news for the long-term. The short-term lines are very close to each other and not directing anything, but the expanding long-term lines are giving out a good cue for the scrip. A continuity of the same behavior will decide upon the fate of the stock for the coming months. <\/p>\n

\"image\"<\/a> <\/p>\n

ASIANPAINT\u2019s average correlation<\/a> of 0.35 with the Niftybees is positive but not strong. At this level the movements of the stock will not be able to replicate the same magnitude as Niftybees. [stockquote]NIFTYBEES[\/stockquote] <\/p>\n

\"image\"<\/a> <\/p>\n

ASIANPAINT has a historical volatility<\/a> in the range of 0.2 to 0.7. The scrip\u2019s volatility is currently in the middle of this range. <\/p>\n

Looking at these technicals, it appears that the stock is presently in the consolidation territory. A short-term hold<\/b> is suggested. For the long-term outlook of the scrip, a breakout of the flag in either direction would be a very strong signal. <\/p>\n

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