Seamec stuck between Rs 165 and Rs 139

SEAMEC Daily NSE Stock Chart Technical Analysis:

Seamec closed sideways again on 4th Nov 2010 (This chart is not reflected Mahurat trading on 5th but it does not make much difference to the analysis)

The CMP of Seamec as on 5th Nov 2010 is Rs 153.65.

Market Outlook:  

• The stock price is volatile and sidways since a long time.  The next week will see another sideways movement with not much different from this week's close @ 153.65.  
• For now, there are no buy-sell signals on this stock and I recommend to wait before taking any move on Seamec.

Technical Indicators:

• There is dual support available to the price at Rs 139.  There is a support line from a previous low and there is the Fibonacci 50% support as well.
• A long term diagonal support line has fallen below Rs 139 in late August and is no longer offering support to the company's stock price.
• If the price rises, it can meet resistance at Rs. 165, which is the Fibonacci 38.2% level in the current retracement.

News (Fundamentals):

• Seamec has posted a loss in the previous quarter, and results of this quarter are awaited.
• The company has announced 30% dividend.  From what I gather, this is the first dividend in 12 years.  This might simply be an attempt to generate interest in an otherwise uninteresting stock, or the company may actually be upto something.  No news about it yet.
• There is no significant news about the company.  The market will move in some direction, either up or down, after news of the quarterly results comes out.
• Unless the quarterly results show that there is a change in the sales or income of the company, or any big deals are announced, there isn't much scope for Seamec to gain in the near future.

SEAMEC Daily NSE Stock Chart Technical Analysis


(Analyzed on request of Sreeni, Bahrain)