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Written by Bimlesh Singh
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Friday, 24 August 2012 00:00 |
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Bajaj Auto is the flagship of the Bajaj group of companies. It’s one of the leading manufacturers of Motorcycles and Three-wheeler vehicles in India. Auto sector performance is indicator of overall health of an economy. Global economy is in turmoil and so is the auto industry. Last quarter results were not great for both Bajaj auto and Hero Honda. Despite dismal results Bajaj stock price has shown a tremendous run up post results. If we look at the price charts below we can very well see that it’s trading near its resistance levels (The short term resistance is round 1760 levels - brown line). We can also spot a nice cup getting formed in recent past (Orange Cup). Normally this pattern is a bullish pattern but we should be skeptical in this particular case. Let’s figure out what’s fishy here. First, the volumes have not supported the price rise (Decreasing Volume – Bottom Right). Second, the last quarter results were not great and such a run up post result seems unsustainable in near future. Third, the stock is trading round strong resistance levels (first 1760, second 1800). Fourth, overall economy is not in good shape and a breakout above 1800 levels is highly unlikely.
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Written by Bimlesh Singh
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Monday, 13 August 2012 00:00 |
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A well integrated pharma company, Aurobindo Pharma is among the top 10 companies in India in terms of consolidated revenues. Aurobindo Pharma has been quite volatile in the recent past and these swings can be attributed to political news flow from the state of Andhra Pradesh. Jagan Mohan Reddy has some stake in the company and traders beat the stock based on some bad news flow regarding him. The price movement ignores the fundamentals and is purely impulsive. The recent quarter result has also been dismal due to huge forex losses. Having said that, we can very well find out from the price chart below that the stock has given proper respect to its long term support of 100.
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Written by Bimlesh Singh
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Monday, 30 July 2012 00:00 |
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Hcl Technology is having revenue of more than $2.5 billion, a market capitalization of more than $5 billion, and a compounded annual growth rate greater than 25 per cent since last five years. They operate in one of the sectors which has provided pace to India’s economic growth. Hcl is a nice company to hold in your portfolio if you are a long term investor. But if you have a short term perspective and want to make some quick bucks without taking much risk then it’s recommended to short sell it at current levels. There are two reasons for going short, first it’s trading round multiyear resistance level (The Green Line in the chart) and second the volumes are continuously decreasing (Bottom right corner in the chart). Even today when the nifty rallied by 100 points it closed in negative which suggests that the stock lacks strength at current levels.
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Written by Bimlesh Singh
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Thursday, 19 July 2012 00:00 |
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Ashok Leyland is the flagship company of Hinduja Group and is one of the largest commercial vehicle manufacturers in India with a turnover of US $ 2.5 billion in 2011-12. Product wise company is very stable and has huge demand for its trucks in southern part of India. They have recently ventured into smaller commercial vehicles and 'Dost' is the latest offering in the SCV category from Ashok Leyland. Indian growth story is intact and everybody knows no economy can grow without means of transportation. Technically speaking stock has been moving in the range of 20 to 33 in the recent past. On the charts we can very well depict the triple bottom formation.
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Written by Bimlesh Singh
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Friday, 08 June 2012 00:00 |
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Aditya Birla Nuvo is the holding company for the Aditya Birla Group. Being a holding company it provides diversification benefits and automatically reduces the risk for equity investors. If we study the historical price movement of the stock we can conclude that it’s trading in the range of 700 to 1000. There was an exceptional loss in their books for March quarter which has again dragged down the stock near its strong support zone of 700-750(The green line in chart below). This should be used as an opportunity to enter the stock as it’s one of the front runners for banking license. The bill is under consideration and once the news flow starts stock price is bound to move northwards.
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Benjamin Franklin once said that the only things certain in life are death and taxes. While taxes may not be true for many people, death is. After...
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