Nifty took support exactly on the Bullish Support Line at 5600 and then reversed. Now after a long period of time one can see the Nifty trading in the X column which shows that there are more buyers than sellers. It has made a double top at 5850 which will act as a resistance. It it very important to see that this resistance is broken, cause this will pave the way for one more attempt at 6200,once it crosses 5925 which is the 50 day EMA.
The short term trend has turned positive and so is the momentum. Nifty is trading above its 5 days EMA which is at 5801, 200 EMA at 5821. Let us hope it breaks the resistance at 5850 where it will once again give a BUY signal.
This stock has been trading in a small band of 50 to 70 for the last 3 years. Currently the stock is trading in the O Column indicating more sellers. It has support at 57 and then 55.
For the stock to trade in the X column the stock has to touch 62. Thereafter it will face resistance at 64 and then 70. Usually the first quarter is the best for Navneet as schools and colleges reopen.
Monsanto:
This stock too is trading in the O column. It has support at 590-570-560. For the stock to trade in the X column, it has to cross 660 from here and then the next resistance is only at 740.
Last Wednesday, I had written about the Volatility Index (VIX) and its inverse relationship to the index.
The VIX touched the highest 22.1 % when the stock markets beat a hasty retreat. Thereafter, as on 1st July, 2013 the VIX improved to 18.09 and you saw how the markets made a come back with over 800 points surge. Keeping track of the VIX helps in knowing the direction of the market.
Just an update on the bullish per cent chart readings as on 5th July, 2013:
Col 1
Col 2
Col 3
Col 4
Col 5
Col 6
Col 7
Col 8
Col 9
BSE SENSEX 100
BSE AUTO
BANKEX
CON. DURABLES
CAPITAL GOODS
FMCG
METALS
HEALTH CARE
REALTY
39
20
29
10
36
70
9
59
27
The table above shows that the FMCG Sector is the strongest performer along with Health Care. But if you are a long term investor one can find value in sectors which are showing the lowest reading:
Remember that the numbers represent the per cent of stocks which are exhibiting a BUY SIGNAL.
Col 2 | Col 3 | Col 4 | Col 5 | Col 6 | Col 7 | Col 8 | Col 9 | BSE AUTO | BANKEX | CON.
DURABLES | CAPITAL
GOODS | FMCG | METALS | HEALTH
CARE | REALTY | 39 | 20 | 29 | 10 | 36 | 70 | 9 | 59
2)Now do you suggest to add any fresh position in Ajanta pharma?
3)Somewhere read that,Rupee depreciation is a big issue for Astral. More than 70% of raw material is import and negligible export to offset. It will hit bottom-line. It is an industry wide impact, I think given the strong demand scenario this cost will get pass on to buyer. There may be a lag of one quarter.
Is it really bad for Astral?
4)After profit rises 21% in Cera sanitaryware…now what is your view on that?
Hi Tony, Your post are very helpful. Your timely response on wimplast helped me exit the stock. What is your near term views for cera and accelya Thanks
I was away for a week on holidays. Sorry I did not reply to your queries, now that I am back will settle down and respond as early as possible. Just returned last night. Once again i will be giving you all the updates. Thanks for bearing my absence as I was out of the country.
The stock has been making lower tops and lower bottoms. It has nearly touched its recent lows. It can be a bottomless pit and as such better to avoid buying such stocks and burn hard earned money. All the short term indicators show that the down trend is not yet complete. AVOID
Bayer Crop is an excellent stock doing all the right things. It made a triple top at 1450 and gave a break out, making a new high. Currently the short term indicators are in over bought territory. One can expect some short term profit booking. Strong stocks like these are always a buy on the pull back.
On the lower side the stock has got support at 1450. Buy on every dip around 1450 where it has strong support from where the break out took place. The next support is at 1360.
The stock is currently in the O column indicating more sellers than buyers, but yet on a buy signal. It has support at 490 where it will make a double bottom and then lower at 470. This is an excellent strong stock to be always bought on dips.
If the stock takes support at 490 and changes direction to touch 520, then it will move into the X column and can touch 570, its previous high. Keep a look out for 490-520 levels.
It is really appreciable to see you respond to each and every query posted by the boarders with your detailed analysis. Your analysis and comments are very helpful to the fellow members.
It would be really helpful if you post your comments on Yes bank post RBI’s shock yesterday. How is Yes bank poised on charts… what are the good levels to accumulate the stock for medium term and any stop loss levels for our longs…
The short term indicators are showing a down ward trend. So some more correction is possible. However on the Point and Figure chart it shows that there is support at 440 and then at 420. If it breaks 440 levels on the lower side it will trade below the Bullish Support Line. However, looking at the past, since December 2012 it has not traded below 420 levels. So this is good chance to enter, as the down side risk is not much while you can always gain on the upper side where the stock had touched 540 levels.
I do not have to say much about Ajanta. It just keeps on doing the right things. There is no change in the short term trend and hence not much correction is likely. The stock has already made a new high and the trend is up. One will have to wait for the results to see how much upside can be expected.
One has to be patient and wait for a correction to set in. I have personally benefited from this. Buying at the upper end will not give you good returns. So my suggestion will be to wait and watch. On the down side it has support at 980-1000 range. There after at 940. Lets wait and look for a good entry point.
This is another excellent stock which is very strong. Currently in X column. If it breaks out above 560, it will make a new high. On the lower side it has strong support at 520-30 and thereafter at 480. The short term indicators show a mild correction which can be used as a good entry point.
