Hithesh Bhai,
ITC is again back to its 52 week high. How do you see it on technical charts? can there be a positive surprise?
Hi Hitesh, please share your technical view on pricol as I see it is not getting enough strength to cross all time high even after multiple attempts.is it better to exit and reenter after breaking 135 to 140 zone on closing basis with high volumes?
Hi hitesh bhai have you looked at Gati , how would you look at the same. With promoter change and debt reduction this looks like a turnaround play. Request your views on the same.
ITC has got some business segments that are seeing very good sectoral tailwinds. Paper, Hotels etc. And all throughout the last rally it has been the ignored one. In fact ridiculed, looking at the kind of memes that were going around few weeks back when it was stuck around 200 levels and then between 200-220. Now when a reasonably decent company undergoes ridicule without any obvious reason, only based on its tock price movement, its usually ripe for a bounce and ultimately those who buy such companies have the last laugh.
On the charts, it has formed classical W (double bottom) between 210 and 238. It seems to be outperforming the FMCG space. (though strictly speaking its not a pure play FMCG company. )
(disc: It is one of our recommendations in hitpicks part of intelsense portfolio.)
In the following chart, note the W I descibed marked by solid horizontal lines. A small flag is marked on the chart on right side of the chart.
Also note a small head and shoulders breakdown before the W pattern formed. Its head had the appearance of a smallish mountain, which I have described in some posts on 52 week highs thread. Its neckline is marked by dotted line.
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Pricol has been trying to clear its previous high posted in 2018, at 137. It has formed a cup and handle pattern in the process and pattern gets confirmed on close and move/consolidation above 137. Post that, targets can be around 250. For that to happen I think it will need to report a couple of blowout quarterly numbers.
@rahil_sayta I dont track gati too closely though its in my watchlist.
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@hitesh2710 Sir, Recently noticed minor insider buying in Astec Life. Also bounce back was quite sharp. Could you pls share tech view and fundamentals if tracking. thanks
Hitesh Bhai - Request your viewpoint on the below points:
- What’s your typical process while doing technical analysis?
- How important is the balance sheet strength in your style of investing (Tech+Fundamentals)?
@hitesh2710 hello hitesh bhai, can you give your opinion on the kind of selling happening in hdfc and hdfc bank counters? its like march 2020 in those two stocks . all supports are being broken like sand bridges. when will sanity return to those counters? and how long will the selling last?
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Typical process of using technical analysis for me these days is to run screens which I have devised for myself. Plus I keep a list of my readings of technical analysis in an excel sheet on a monthly basis and keep storing it and reviewing it to see whether things have progressed as per expectations and if not, why? If its related to general market weakness, I am okay with it but if its specific pattern failure, I try to find out reasons for it.
In my style of investing, I focus more on possible triggers rather than balance sheet strength alone. If a call is medium to long term I try to dissect the fundamentals and be sure about the company’s fundamental merits. But if its a short term bet in a reasonably decent company, then I dont look too closely. In such cases the risk reward is quite well mapped out and hence the execution equation becomes quite easy to implement.
@Vikky9995 HDFC counters had a single day frothy upmove which seems to have subsided. In case of both hdfc twins, it seems recent weekly swing lows should be kept in mind. Personally speaking, if I were wanting to buy something for my coffee can portfolio, I would love to buy these two companies during their current corrective mode. But it doesnt suit my investment style and hence in watchlist only …
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@Abhishek_Kumar_9 Astec life chart seems quite strong with stock price hovering close to its all time high even in a weak general market. Fundamentally I dont track it.
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@hitesh2710 sir any updated views on usha martin chart as it has breached the previous ATH on high volumes?
Thanks
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Usha martin has as you said, breached its previous all time high of around 154, and had gone up to 159 and in line with market weakness gone down to close around 150. Breaking multi year highs opens space for large upmoves. When and how those moves happen depends upon individual set ups… Sometimes stocks shoot right up and can travel a sufficient distance before cooling off. Other set ups, stocks tend to consolidate in a range in and around the previous ATH regioin for a period of time before taking off.
I think q4 results should be decent and if that happens and there is some kind of positive newsflow related to the company, it can give good moves.
It seems to be a good technical set up with good business momentum. As disclosed before I remain invested in the company since a few quarters ever since it was around 65-70 and added more on consolidation between 80-90.
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Hitesh bhai,
Please share your views on ABB and Cummins, in case you are tracking these companies.
Thanks
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Forgot to add the table for value addition of all the members 
My bet is purely on Trident and some others like Nitin Spinners and Arvind Ltd look good.
Source : Spark Capital Indian Textiles Report
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Hi Hitesh bhai,
What are your current views on Force Motors ?
I don’t track force motors too closely ever since I got stopped out of it few months back… Technically it still is below its 200 dema but daily chart seems encouraging. But it still needs watching for a few more days.
Auto as a sector also seems to be showing some resilience, and M & M chart seems quite strong.
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Hitesh Bhai
Again good results from Schaeffler. I remember you writing that you have sold positions. How do you see it now after good results
Thanks
Hi Hitesh,
I have a small accounting question please clarify. If a company has differed tax asset lets assume 6000cr and for the entire financial year it has mad a provision for tax, around 300cr. What will be the adjustment at the end of the financial year. where will this provision for tax be adjusted. Please clarify. Thankyou
Hi Hitesh sir,
Hope everything’s well at your end. I had a question:- Now that the growth is back in Laurus. How will you view it as a techno funda bet? FY23 again seems to be a Quantum jump year just like FY21. Will be interesting to hear your opinion given you rode the story from FY20-21.
Disc:- hold the stock.
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@hitesh2710 Can you please share your view on LT foods in terms of technicals for the long term. Fundamentally the company seems to be doing everything that makes the company a re-rating candidate. But given the macro conditions and overall bearish sentiments, needs confirmation on charts.
Thanks Hitesh Sir!