LIC Housing was in a trading range of 245 to 280 level for last one year. But in Mid December, It broke out from the level of 280 and touched a 52 week high of 300. After that it went into a sharp correction and again trading in that 280 level. Now in the process the stock has created a bearish Head & Shoulder pattern.
No one needs an introduction of Infosys. The IT bellwether is always there in the watch list of a serious stock market investor. This stock has never disappointed long term investors but recently it has been generating opportunities for short term investors too. Just have a look at the white spots in the chart below.
Excellent growth since inception, high profit margin, and a consistent performance, eClerx has been one of the most interesting companies in last few years. It has a terrific management team that has taken this company from nowhere to a company which generates about 500 crore in revenue today.
Pantaloon Retail is the flagship company of Future Group, catering to the entire Indian consumption space. Through multiple retail formats, they provide services to Indian buyers, sellers and businesses alike. If we talk about the stock’s performance in recent past we can see quite a lot of action because of news regarding FDI in retail.
When the Government proposed the bill it touched a high of 235 (It was trading round 150 prior to the news flow). Due to election in near future Government was forced to put the bill on hold and stock nosedived to 125 levels. Now as the government has notified the FDI in single retail there is again an upsurge in the stock price and is currently trading at levels of 150, the same price when there was no news regarding FDI. In the charts it’s pretty clear that a rounding bottom is getting created (The purple Line).
Buy round current levels of 150
200 to 240
Event to watch
Positive news flow regarding FDI in multi brand retail
Date of Analysis
Rounding bottom patter getting formed is supported by volume statistics too. Volume tends to mirror the price pattern in case of rounding bottom pattern. We can see that as the rounded bottom began to descend, volume started decreasing as bearishness waned and investors became indecisive. Following a period of relative dullness, at the bottom of the bowl, the price pattern started its upturn. As sentiment becomes more bullish, volume tends to increase. Best strategy is to buy this stock at current levels and wait for some positive news regarding FDI in multi brand retail for handsome returns. Government will definitely push for it once the elections are over.