Major Indices ready for a correction?

Just wanted to share a quick update on Indices.

Its all green everywhere. Nifty is cruising everyday. We know markets can't move one way. A correction is inevitable and healthy as well. Has the time come for a correction?
Nifty daily chart is indicating at a negative divergence. This is not a very comfortable situation. A correction ( can't really spell out the quantum of the correction).
Next good support for Nifty is at 8540.

Nifty, Bank Nifty, Nifty Mid Cap and Nifty Small Cap charts can bee seen below:

 Nifty daily chart:

Bank Nifty Daily

Nifty Mid cap Daily

Nifty Small Cap Daily

Correction likely to be over in Dishman Pharma

Dishman Pharma is a Midcap Pharma company. It is a supplier to major pharma companies world over.

Here is an analysis of Technical Structure of Dishman Pharma. 

Before getting into Dishman Pharma analysis, would like to give you a post analysis update of a related study of Pharma sector (Large Cap Pharma Companies) I had done on 29th June. You can read that analysis here Pharma stocks likely to move over 15% from current levels

Movement in Major Pharma stocks since 29th June is:

Dr Reddy: 12%

Lupin: 13%

Sunpharma: 4.5%

Auropharma: 10%

Biocon: 12%

Lupin: 5%

Coming back to Dishman Pharma - it seems that Dishman Pharma has completed classic correction on monthly chart.

I have marked all the levels here on chart enclosed. You can see that the stock has broken out of resistance near 128-132 in month of Sep 15 and posted a high of 209.90 in Nov 15. Previous high of stock was 227 in Jan 2008. This high acted as a resistance when stock tried to break above all time high in Nov 15. Since then the stock has been correcting.  

The stock has posted a low of 127.95 in Jun 16. This is the same level from where stock had broken in the month of Sep 2015. Now the level is acting as support. We can assume that the stock is trying to take support at this level.

After posting low of 127.95 on 24 Jun 16 stock is showing symptoms of recovery. This is further emphasised by a double bottomish structure on 19 July 16. Currently stock is trading in a range. This range is between 127 and 148. The resistance near 148 (can bee seen on daily chart) may be broken sooner or later. If stock shows some correction from current level, that will be an accumulating opportunity. 

 

Next major resistance is near 165-170. We can expect stock to cross the hurdles this time to break all time high and start its next bull run.

Disclaimer: The contents produced here are purely for educational purpose. They should not be construed as buy/sell recommendations. I am not a SEBI registered Analyst or Investment Advisor. Readers are advised to consult their Investment advisor before taking any decisions based on above write-up.  

Beginning of a new bull run in Mahindra & Mahindra

This Auto major is one of the most versatile players in the sector. They have presence in all the categories from agriculture to luxury cars to two wheelers.

Mahindra and Mahindra is cruising with the new initiatives in terms of product category, which is making them a strong player lesser prone to sector fluctuation as compared to other players.

On Technical charts there is a classic formation. You can see from the chart enclosed here that the stock has been trading in a broad range since Sep 2014 till June 2016. This range was between 1140 to 1410. In June 2016 stock closed beyond this range at a price of 1429. This suggests a range break out on monthly chart.

Before the period consolidation (trading range of Sep 2014-June 2016) the chart had given a nice run up of 776 to 1407 in a period from Sep 13 till Aug 14. That run up has given more than 80% returns to investors. The run up had come after a break in range just before this run up.

Similar pattern seem to have been emerging on the chart. This is good for medium term investors who are looking to invest for a period of 6 months to a couple of years.

Currently stock is trading near 1475. On daily chart there is a support near 1400. The prices can correct upto that level which will be an accumulation opportunity to investors.

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Read my blog for many such articles.

Disclaimer: The contents produced here are purely for educational purpose. They should not be construed as buy/sell recommendations. I am not a SEBI registered Analyst or Investment Advisor. Readers are advised to consult their Investment advisor before taking any decisions based on above write-up.