Monday, January 30, 2017

BHEL - Head & Shoulder breakout

Bhel was trading in a downtrend on daily chart since Sep 16. Stock was trying to get into a new cycle of higher top higher bottom from its existing downtrend. For short term, the current Head & Shoulder breakout can act as confirmation to this theory.

Sunday, January 29, 2017

Petronet - Fresh Flag breakout

For about last 12 weeks this stocks was in consolidation phase. Consolidation is actually a period of contraction. We expect price to remain stagnant during contraction. Contraction periods are usually followed by expansion. Expansion means prices move in either direction. You can see below weekly chart of Petronet. A clear breakout of consolidation is an indication of start of expansion phase.

Friday, January 27, 2017

Divis Lab - grab the 50% discount offer

Divis Lab was trading near 1350 in Sep 16. The stock is available near 700 while writing this article. No one is willing to touch it even at this level. 
Lets try to understand whether Divis Lab is an attractive buy at this level.

Here is quarterly ( candle per quarter...though little long term, its worth discussing here) chart of Divis Lab
The stock is trading near a substantial support area. Biggies would want to buy at this level.
I am not saying the stock will start moving up right away from this level. The level might be tested couple of times. The stock may get into sideways trend for some time.
If you have patience and you are ready to wait for some ( a year or so) time there is an opportunity to earn 50% returns here.

Closer look:
If you look a little closer on the basis of daily and weekly chart, you will find that the chart structure is becoming flattish indicating slow and steady buying at current levels. The buying area is between 600 and 700. So may want to average between this price. 
You can look to book first profit near 900-930 and later near 1100-1150
Have your risk management in place and you have a nice trade ready to be served.

Weekly Chart:

Tuesday, January 17, 2017

SAIL - change of cycle

Steel Authority of India, the steel giant, is seen in the process of changing its cycle from 'Lower Top Lower Bottom' to cycle of 'Higher Top Higher Bottom'

Monday, January 16, 2017

Trident - breaking to all time high

Both below are weekly charts to Trident. 
In first chart, larger picture exhibits the strength on chart.

A closer look in the second chart shows an ascending triangle breakout. 

Sunday, January 15, 2017

What and how of Nifty before Budget

Larger Picture:
Here is larger picture of Nifty with the help of monthly chart. You can see that on monthly chart Nifty is taking repeated support on a trend line. This trend line traces back to March 2009. This trend line exhibits a strong support to Nifty in 8000-7900 range. On the monthly chart, last month Nifty has formed a bullish hammer. As a follow-up to this monthly hammer, Nifty is in process of creating a bullish green candle. This bullish green candle is yet to form completely. Larger trend is up.
There is a resistance to Nifty in 8500-8590 area. On this larger time frame Nifty is still not in the region which can be called as over bought. We can expect the uptrend to continue. Correction is a part of an uptrend and is also healthy for uptrend. One such correction can not be denied once Nifty reached its resistance.
Monthly chart:

Closer Picture:
Nifty on its Weekly chart is still not giving us symptoms which is an indication of a downside correction. However some pressure is seen, if you carefully observe daily chart, Nifty is trading in overbought zone and also has its resistance nearby. Major event of budget is schedules on 1 Feb. This event can have large impact on Nifty. Technically a fall in Nifty to its support near 8250 will be an opportunity to add to the positions, as the larger picture remains positive. 
Markets usually trades nervous before important event and takes the direction on the day of the event.
The arrows on weekly chart below exhibits important areas.

A picture still closer:
On daily chart one can see that Nifty has started experiencing some pressure. Nifty is also trading in overbought zone and has negative divergence. This is an indication of a correction. However the correction may not be substantial looking at the positive picture on larger time frame. However this is definitely not the time to go long. Wait patiently for the markets to correct and then enter. If you have profits in existing positions, current time may be the right time to book it. For me 8506 and 8255 are crucial levels. 

At Bonvista Equity Research we believe in simple ideas to make money in stocks. Right analysis with good money management and risk management is the key to earn profits in markets. To have look at our Premium Service visit our website Bonvista Equity Research.

Friday, January 13, 2017

Thursday, January 12, 2017

Tata Communucation - Ready for a Flag Breakout

Tata Communication is trading in broad range since begining of November. An ascending triangle on weekly scale is formed with this 2 month long consolidation. Observe the activity in volumes this week. Possibility of a breakout?

Monday, January 9, 2017

Fortis - Rectangle breakout

Fortis is breaking out of 10 months long rectangle. Here is weekly chart of Fortis, though the weekly candle is not closed as the week is yet to complete. We can anticipate that it will close with the nice breakout.

Sunday, January 8, 2017

ACC - a double top and now a double bottom

ACC monthly chart below. Looks attractive specially because of low risk.

SRF - obeying the support

SRF Weekly chart. This is a classic pattern. A rectangle breakout is being tested. Expect a rise in demand here.

Havells - On a bouncing spree after a nice Correction

Ready to spell a new move after a nice correction. Weekly time frame.

Asian Paints - not yet late

This post can also be treated as a followup post to my earlier post - 
Asian Paint is one of the stocks I had recommended at that time. Check its recent reaction on the chart below. 

Sriram Transport Finance - Buy Cheap

 At current levels Sriram Transport Finance is available at a discount of a 40%.
Strong support area and price till next price hurdle has lot to offer. Weekly time frame here.

Ajanta Pharma - Time to grab

This post can also be treated as a followup post to my earlier post - 
Ajanta Pharma is one of the stocks I had recommended at that time. Check its recent reaction on the chart below.