SBIN

The counter has been trading in the range of 249 to 250 for the last few sessions. However during last session it formed a very strong bullish candle on a daily chart. Besides it has been consistently respecting its 20 & 50 DMA on a closing basis. With other technical indicators turning quite bullish we expect the counter to continue its northward journey in near future. 257 is the next major hurdle as per daily & weekly analysis. Any close above 257 and we may see non-stop rally up to 270-275 levels. Reasonable SL is below 240.

Disclaimer: We have already initiated positional long on the counter from 241 levels to our paid subscribers.

Heromotoco

The counter today pared all Intraday gains  and again found a stiff resistance around 2680 levels. Today's move was backed the decent volumes. Though the counter is consistently respecting its 200 DMA, looking at today's reversal it seems that bears took the full control of the day and it might be vulnerable in coming sessions. Besides other technical indicators too are looking weak reinforcing the bearish view. Short position can be initiated at current levels with SL of 2635 for probable down fall up to 2510-2502 levels.

Havells India

The counter witnessed a very sharp bounce back from its strong support area around 238 marks. It quickly captured its short term moving averages on a daily chart and is consistently respecting them on a closing basis. It seems that it has developed a classical Falling Wedge Chart Pattern on a daily chart. With other technical indicators looking quite bullish we expect the counter to challenge its 200 DMA in a near term. Traders can bet on the counter 263.35 SL 252 (CLS) TGT 275-278.

Nocil Again. : Chart Study of Symmetrical Triangle Breakout.

Earlier we recommended the counter around 43 levels with Price Target of 55 and as per our expectations the counter achieved our Target delivering whopping return of almost 28% in no time. Again after retracing to its key demand zone around 35 levels the counter started steady recovery.

On a daily chart the counter seems to have given a Symmetrical Triangle Breakout with decent surge in volumes. On a weekly chart too the counter is showing very strong momentum. With Technical Indicators looking quite bullish on both daily and weekly charts the counter is expected to continue its northward journey in near term and might challenge its previous high around 55 levels.

SKS Micro : Chart Study of Bulls Trap

The Micro Analysis of Daily Chart of Sksmicro clearly points towards Bulls Trap. It posted a swing low around 360 with the burst of volumes. After consolidating for few days it started its northward journey which was not supported by volumes. Just couple of days ago it posted  intraday low around 436 and showed smart intraday recovery but failed to close above its 200 DMA. During today's session it witnessed gap up opening of more than 5% but gave a poor close and again closed below 200 DMA with quite higher than average volumes. We believe that the current set up is a clear hint of  probable Bulls Trap and expect more panic in the counter in sessions ahead.

HCL Technologies : Exploit the Opportunity

The counter gave false break out on a daily chart around 980 levels and witnessed a vertical fall from there. It found support around 811 levels and started steady recovery. It seems that the counter has formed a strong base around 825 levels during recent past. The increased volumes around its crucial support area of 790 levels indicates accumulation. The risk-reward ratio that the counter offers at current level seems to be quite favorable. Traders can exploit the opportunity  by resorting to buy on dips strategy applying closing stop loss of 790 for the possible upside move up to 945-955 in a medium term.

Adani Port : Swing Trade

The counter after posting a swing low around 293 levels started steady recovery. It witnessed a gap up opening opening around 305 levels and continued its northward journey to kiss its 200 DMA. At times bulls managed to close the counter above its 200 DMA but could hold it above the same. Again today the counter got resisted at its 200 DMA. With other technical indicators turning bearish it seems that the counter may trade with negative bias in sessions ahead. Sell 317.7 SL 324 TGT 307-303.

Voltas : Keep Your Family 'Wealthy'

The counter commenced a very strong uptrend after breaking 125 mark and posted all time high around 360 levels. Post such strong vertical rise the counter entered a correction phase and posted a swing low around 243 mark. On a daily chart it is very clearly visible that the counter has formed a very strong base around 243 levels during recent past. Technical Indicators on a daily chart have turned bullish suggesting positive momentum to continue for short term.

On a weekly chart it seems that the counter has completed its 4th wave correction and is about to commence its wave 5. Participants can accumulate the counter between 260-270  for 1-2  months perspective for possible up move up to 315-330 levels applying closing stop loss of 243.

 

 

 

 

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Apollo Hospital : Bucking the Trend

The counter after forming a double top around 1476 levels witnessed a very sharp correction. It posted a swing low around 1195 levels and started steady recovery. Today the counter managed to give a very powerful close above its resistance zone around 1436 levels with quite higher than average volumes. The major trends i.e. weekly and monthly look quite bullish. With other technical indicators turning quite bullish we expect the counter to continue its northward journey in near term bucking the over all market trend. The counter seems to be all set to challenge its previous all time high around 1478 levels. Traders can bet on the counter 1440.40 SL 1387 TGT 1650-1680.

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Motherson Sumi Systmes : Techno - Funda Analysis

Motherson Sumi Systems shares remained in limelight this week amid concerns related to German automaker Volkswagen (VW), which has admitted to cheating emissions test in the US and may face a fine of up to $18 billion.


Motherson is a key supplier to Volkswagen in Europe and sales to VW Group accounted 44 per cent of Motherson’s consolidated revenue in 2014-15. However, VW alone constitutes 12 per cent of Motherson Sumi sales.
The share price of Motherson, which supplies parts such as mirrors, bumpers, dash board and door trims to various auto companies of the Volkswagen Group tanked after the controversy surfaced.


The following are the  FAQs relating  Volkswagen emissions scandal.

What has VW done?

The company has falsified emissions data on its vehicles in the US, pretending its cars were cleaner than they are

How did they do it?

By installing a piece of software into computers on its cars that recognise when the car is being tested – a so-called "defeat device". This fine-tunes the engine’s performance to limit nitrogen oxide emissions. When used on the road, the emissions levels shoot back up

How widespread is the problem?

Regulators say 482,000 diesel cars were sold in the US from 2008 to 2015 with emissions certificates based on this faulty information

Which models are involved?

The allegations, which have been admitted by VW, cover the Jetta, Beetle, Audi A3 and Golf models from 2009 to 2015 and the Passat in 2014 and 2015

Is it just VW doing this?

A US investigation has been widened to other car manufacturers as campaigners warned that the practice was likely to be widespread across the industry.

Now let us examine what Traders/ Investors should do using two basic approaches.

1. The Fundamental Approach :    After the recent correction, if you are thinking to add Motherson Sumi shares in your investment portfolio then hold on for a while.

We suggest investors to wait for the stock to correct at least Rs 200 level. At current market price, the scrip is trading around 17x FY17 EPS. This kind of P/E for an auto component company is quite stretched in our view. Sentiment wise there could be more adverse news flows for Vokswagen as issue is not just recall of vehicle rather rigging fact. The same could impact valuation multiple for Motherson Sumi.”
In the past 10 years, consolidated gross sales of the company jumped around 45 per cent annually to Rs 35178.60 crore for the financial year ended March 2015. Gross sales was at Rs 882.73 crore at the end of FY05. Net profit of the company jumped 31 per cent annually during the same period.
For the year ended March 2015, the company posted a consolidated net profit of Rs 1291.50 crore against Rs 85.83 crore in FY05. During the period debt-to-equity ratio of the company jumped from 0.53 in FY05 to 1.55 in FY15.

  2. The Technical Approach : The counter has broken major support around 285 levels on a daily chart. As per weekly chart the counter held its support zone of 250 levels on a closing basis after posting a swing low around 228 levels. On a monthly chart the counter had a major support around 300 levels which has now been broken in a convincing manner.

So putting together all the time frames it seems that the counter is highly oversold on a daily chart with major trend down. Traders should resort to sell on rise strategy unless and until the counter gives a consecutive closes above 285 marks. In other words the shorting zone seems to be 275-280 areas with placing SL above 200 DMA which seems quite difficult for the counter to regain at least in a short to medium term.

Cipla: Swing Trade

The counter has been trading below its short term moving averages consistently. During recent past the Bulls made number of attempts to capture 200 DMA but failed. The counter was finding strong support around 649 on a closing basis. However today the counter failed to close above the said level suggesting bulls gave up the battle. With other Technical Indicators looking quite weak possibilities of further down side from current levels in a near future can't be ruled out. Traders can initiate short position on the counter 644.15 SL 665 TGT 625-618.

CEAT LTD. : - Reversal On The Card?

The counter has been in a very strong uptrend.  Even during the sell off the counter continued to swim against the tide and kept posting new all time highs. However the latest all time high posted by the counter the previous day seems to be lacking conviction for the following reasons.

1. The counter has formed higher high but RSI has failed to do so. In other words RSI has formed lower low. In technical parlance such RSI set up is called Negative Divergence of RSI and we see the same on a daily chart. Negative Divergence of RSI is the signal of possible reversal of the existing trend.

2. MACD Histrogram and Stochastic too shows the Negative Divergence.

3. The recent top was formed with bursting volumes indicating "Blow-off" move which again is the sign of possible reversal.

So in view of the above mentioned observations we can conclude that the counter may witness reversal in a near term.  The Born Tough counter may find it tough to sustain at higher levels.

Reliance Communication

The counter after posting a swing low around 45 showed a sharp recovery. During recent past it formed a strong base around 55 levels and gave a powerful breakout. The counter gained its short term moving averages with decent surge in volumes. With other technical indicators looking quite bullish the counter may continue its northward journey. Recommend Buy 65 SL 58 (CLS) TGT 75-78 in a medium short term.

HDFC Ltd. Swing Trading Opportunity

The counter today kissed its strong support zone around 1135 levels and managed to close above the same.Though the counter is in downtrend looking at the volumes of last couple of days possibility of bounce back cant be ruled out. At this level the counter offers a good risk-reward ratio too. Traders can long  the counter only for swing trading purpose above 1150 with strict SL of 1136 TGT 1195-1205.

Dewan Housing Finance Corporation- Inverted H&S . Will it work?

The counter after posting all time high around 570 witnessed a sharp correction. It posted a swing low around 360 mark and started to consolidate and gradually commenced its northward journey. It seems that the counter has formed an Inverted Head & Shoulder Pattern on a daily as well as weekly chart. The distance from its Head to Neckline is around Rs.120. So theoretically on the confirmation of the pattern we can have upside target of Rs.625. Lets see how the pattern works out... !!!

Reliance Capital

The counter has been in a downtrend for the quite long time. During recent past it posted a swing low around 335 and continued to trade in a narrow range. However during last session it formed a strong bullish candle on a daily chart and managed to move out of its consolidation range with decent surge in volumes without breaking the swing low of 335. Besides the counter has also managed to close above its 20 & 50 DMA. Other technical indicators too looking quite bullish the chances are very bright that the counter has bottomed out and may commence its short term uptrend from here. Trades can bet on the counter 384.4 SL 360 TGT 406-415 in a short term.

Wipro Ltd.

The counter started steady recovery after posting swing low around 512 levels. During recent past it posted swing high of 577.75 and witnessed pullback. However bears could not hold the prices lower and again the counter started its northward journey and captured its short term moving averages . The counter again has entered its resistance zone around 570 levels. With other technical indicators looking bullish it seems the counter is on the verge of commencing its short term uptrend. Traders can bet on the counter 565.4 SL 548 TGT 582-585.

Cipla Ltd.

Enjoyed the Blast in Reliance or not? Remember DNA Test ?

And Nocil from 43 to almost 50 more than 10% and still looking hot.... 

Biocon already kissed 476... Recommended around 455...

And Nifty darling ... Remember our words or not?

Any close above 8066 and relief rally up to 8192... And what happened

Nifty Darling blasted and achieved all TGTs on upper side

But 

But still you are searching the blogs or multibagger stocks ?

Still listening to those jokers on TV and listening to their Bla....  Bla???

 

Everything is open and 100% transparent.

Join us and feel the power of Trend Trading.

Now Cipla

Will Dark Cloud Cover show its Power?

The counter has been in a downtrend for the last few weeks. During recent past it formed a base around 570 levels and started its northward journey and kissed 622 levels where its 20 DMA is placed. It witnessed gap up opening just a couple of sessions ago but bulls failed to capitalize the move. 

The counter has formed a Dark Cloud Cover Candlestick pattern on a daily chart. As mentioned it failed to cross its short term moving averages and witnessed reversal. On weekly chart too it has found resistance around its 50 WMA.  Though the momentum indicators are looking moderately bullish looking at the current chart pattern it seems that the counter may remain under pressure in sessions ahead.

 Short Position can be initiated around 605-607 levels with closing SL of 620 TGT 590-585 in a short term.

Biocon

The counter today formed a strong Bullish Engulfing candlestick on a daily chart. 

It not only captured its short term moving averages but also managed to close above its 200 DMA.

The volumes were quite higher than average volumes. Other technical indicators too have turned bullish. So at the current level the counter looks HOT. 

Bulls dominated the day and looking at the above factors possibility of further upside from current levels can't be ruled out.

Traders can go long on the counter 455 SL  435 (CLS) TGT 480-500.