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.