Dabur Weekly: 1-5 Nov 10: Support @ Rs 96

DABUR INDIA Weekly NSE Stock Chart Technical Analysis:

Dabur India closed the week with a spinning top candlestick.  Trading was at one of its lowest in the past 4 months.

The week closed at Rs. 100.10 (This chart only shows updation upto 4th Nov 2010 which closed at Rs. 99.6).

Market Outlook:  

• The price has good support at Rs. 96.  By end of next week, this should be achieved and the price will bounce back from here.  
• If the price goes below Rs 96 and stays below for some days, it could be difficult for the price to return up again for some more time.  
• Don't buy unless the price bounces back from Rs 96, and buy if it bounces off Rs. 96 and starts rising again.

Technical Indicators:

• Fibonacci 78.6% and a 1-year old support line merge at Rs. 96, making it a very important support line for the price which has otherwise been falling since late September.  Once the price regains its uprise after reaching Rs 96, its a good time to buy the stock.  
• If the price falls below Rs 96, the next support can only be found at Rs. 82 price levels. 
• A shoulder and a head have formed at Rs 110 and Rs. 113.  Is there a head and shoulders in the making?  If the price falls to 96, rises back to 110 and falls back again and goes below 96, jump out of the Dabur ship for the time being, or go short to make money.

News:

• Dabur completed a buyout of  Turkey`s Hobi Kozmetik Group last month, and will use this platform for a global launch into Turkey and surrounding European and Middle Eastern Countries. 
• The earnings have increased 10% over the same quarter in last year, which is modest and not attractive considering inflation and increase in consumer demand.  International acquisitions might add flavor to the company in the long run but for now there is no glamor in its quarterly results.

DABUR INDIA Weekly NSE Stock Chart Technical Analysis: