{"id":266638,"date":"2013-01-03T11:06:06","date_gmt":"2013-01-03T05:36:06","guid":{"rendered":"http:\/\/stockviz.biz\/index.php\/?p=266638"},"modified":"2013-01-03T11:08:52","modified_gmt":"2013-01-03T05:38:52","slug":"analysis-idfc","status":"publish","type":"post","link":"https:\/\/stockviz.biz\/index.php\/2013\/01\/03\/analysis-idfc\/","title":{"rendered":"Analysis: IDFC"},"content":{"rendered":"

Today\u2019s pick is IDFC [stockquote]IDFC[\/stockquote]. The stock began 2012 with an uptrend which ended around mid-March after testing resistance around Rs. 150. This was then followed by a correction to Rs. 120 in June with a double-bottom formation. The stock has since risen to its 52-week high of Rs. 180 and has been trying to break free of that level since December. In the last three months, the stock has moved +9%<\/strong><\/b> vs. +5% of the Nifty\u2019s. <\/p>\n

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

Oscillators RSI<\/a> and CMO<\/a> are in no-man\u2019s land. Also, the short-term technical flashed a 4×9 and a 4×18 Bullish<\/b> cross-over for the scrip yesterday. <\/p>\n

The MACD<\/a> line and the signal line have been moving close to each other, with the stable histogram levels, indicating no particular bias. However, long-term GMMA<\/a> lines are experiencing expansion which suggests an upward movement<\/strong> for the stock. <\/p>\n

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

IDFC\u2019s average correlation<\/a> with the Nifty<\/a> is 0.72 is positive and quite strong. The scrip will be replicating the movement of Nifty closely. [stockquote]NIFTYBEES[\/stockquote] <\/p>\n

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

IDFC has a historical volatility<\/a> in the range of 0.4 to 0.8. The scrip\u2019s volatility currently is in the lowest part of the range. <\/p>\n

To conclude given these technicals, we suggest a short-term and long-term BUY<\/b>. Although, the long-term trend could lose strength on account of divergences that are visible in technicals. Trade this with a trailing-stop-loss<\/a> in place so that you can book profits when the reversal takes place. <\/p>\n

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