Cera Sanitaryware Ends Week with 50% Fibonacci Level Support

Cera Sanitaryware stock price on NSE has ended the week sideways.  The stock has taken support of the 50% Fibonacci level today.  We had discussed about this stock continuously taking Fibonacci support in yesterday's post.

The market seems to be very confused about where Cera will head next.  It seems definitely set to fall further on Monday 1st November 2010.

NIFTY Approaching Triangle

After a gap down and 2 more days of falling, NIFTY finally showed up a positive sign - a Dragonfly Doji.  Moreover, this dragonfly doji comes with a strong buying interest in the market, with volume at one of its highest levels in the past year.  

Based on which way the NIFTY breaks the triangle, we will determine what position to take. The moving averages are also flying apart, denoting the continuation of a choppy market for some more time.

Dabur Could Fall if Fibonacci Zero % breached - Day 2

Dabur stock price on NSE created a consecutive bottom today when its intraday low closely match yesterday's intraday low.  But the price rallied back and closed above yesterday's high.

The overall market interest in this stock was average and much lower than yesterday.

The Fibonacci Zero % Level was not breached even today,  but the stock opened higher today at 23.5% Fibonacci level, higher than yesterday's close, and closed above yesterday's close as well.

Only if the Fibonacci Zero % is breached, should you think about liquidating this stock. If not, wait and watch.

Bajaj Auto Buy Signal - Price begins another short term upswing

As exptected in yesterday's post, Bajaj Auto went back up again after reaching its 50 day moving average today.  The market opened gap up and ended up at 1510.95.

The volume is average, other technical analysis indicators are looking up.  This means the stock is about to make another short term upswing.  

Go long on Monday market opening.  There is no target, but put a stop at 1462.  Sell when the stochastics blue line crosses the red line, or the RSI starts falling back (preferably when RSI is falling back from above the oversold level of 70%).  The small swing should last 4-7 days, as is seen in the recent past.  Keep a watch on these indicators daily if you go long on Bajaj Auto on NSE on Monday market opening.

3i Infotech & 200-day EMA

3i Infotech stock price on BSE has crossed its 200-day EMA from the underneath after almost 6 months of staying under the 200 day moving average.

This could mark a positive sign for 3i Infotech in the stock market.  

A closer looks shows that today, the stock price went to an intraday high above the 200 day moving average but it dropped back to close further below with good volume.

Moreover, the intraday high touched and retracted from a trendline that is supported by some other tops and bottoms in the past 6 months.

Though the stock has faced resistance at this level, breaking through the 200 day moving average is a very positive sign and if the price breaks through this resistance with confirmation on next successive day/s, its a good time to long this stock.  I'll keep this forum updated.

Hero Honda Moving Averages Coming Together

Wow! And I thought yesterday that the Hero Honda stock price in NSE would close positively today.  I wonder which indicator I missed.

The price fell today owing to weak quarter performance of Hero Honda.

There is a bearish counterattack pattern appearing today and the market has returned to its last day's open, and this is a negative signal.

Interestingly, the 20, 50 and 100 day moving averages have come together today, which means the market is building a consensus on the next price movement.  The 20 day moving average climbs through the 50 day moving average from below, which is a positive signal.

The volume is lower than yesterday, showing that today's price fall does not have the same intensity as yesterday's rise.  This is a positive signal.

We are getting a mix of positive and negative signals, making it difficult to determine the next price movement.

Ideally, if the stock price falls further, it should find support at the 250 day moving average, as the price has not fallen below this level or remained fallen below this level for more than a week since the past 2 years.

I feel the price will fall on Monday market open, bottom out near the 20 day moving average, and rise again. For now, a short position can be entered into with a purchase at 1860, stop at 1930 levels and a target at 1820-1800.

TVS Motors - No Signals Yet but watch out for a bottom at Rs. 70

In yesterday's post, I had pointed out that 3 lines of support are merging on the TVS Motors stock price chart on NSE, and it would be important which of these lines the price breaks and which one it respects.

Interestingly (or not so interestingly), the intraday low fell below all 3 support lines (2 trend lines, 1 50 day moving average).  But it climbed back and closed above all 3 lines of support.  This makes the next day more interesting to watch before taking a position.

There is a line of support to the TVS Motors stock price on NSE at Rs. 70.  This was a level where the price found some resistance before it gapped up and created this line into support in mid-Aug 2010.  We can see that this line of support has indeed been quite "supportive" to the price.  

This will be a line to watch out for at Rs. 70 price level.  If this line is crossed with good volume and followed by negative candles, the market might not rise up soon.  But if this line is respected, the price will go up again.

The stock price has formed a Reverse head and shoulders pattern.  The price today has fallen below the reverse shoulder, which is not a good sign.  Other indicators also point towards a decline.

The price could fall further on Monday, obstacled by 2 diagonal support trend lines, the 50 day moving average, and the Rs. 70 support line.