Apollo Hospitals Weekly: 1-5 Nov 10: Strong Support @ Rs 510

APOLLO HOSPITALS Weekly NSE Stock Chart Technical Analysis:

Apollo Hospitals ended this week with a fall, but most of the market has not shown interest in the falling of this stock.  The bullish sentiment around Apollo Hospitals is high even though the price seems to have fallen.

The CMP of Apollo Hospitals on 5 Nov 2010 is Rs. 521.20.

Market Outlook:  

• The price will reverse from this point and the next week will close higher than it opens on Monday.  
• There is very strong support at Rs 510. 
• If you plan to buy Apollo Hospitals, this is a good time to get in as the price is not expected to fall below Rs 510.  In case the price does go below Rs 510 during any trading session, buy immediately.

Technical Indicators:

• The price is strongly supported at Rs 510 and ideally will bounce back upwards from this level onwards.
• The Fibonacci  78.6% and Fibonacci Fan 23.6% crossover at Rs. 510 and we can see that the stock price is staying above this level since 4 weeks.
• The Fibonacci Fan 23.6% line is expected to act as the line of support for the next rise in the stock price.

News (Fundamentals):

• Turnover and profits are increasing consistently.  
• Apollo Hospital is also planning to venture in Tier II and Tier III cities and 1500 beds and 350 pharmacies in the next two years.  
• There is also the 12% stake of Malaysia based Khazanah Hospitals, major stakeholders in Asia's most profitable hospital chain.  
• The medical tourism business is also growing and Apollo is expected to be a major beneficiary due to its brand value.
• The only downside is the high fixed costs of running a hospital.  If the management goes lax on cost management it might lead to loss of profit and affect the company financially. 

APOLLO HOSPITALS Weekly NSE Stock Chart Technical Analysis