3i Infotech Weekly: 25-29 Oct'10: Doji Candlestick

3i Infotech NSE Weekly Stock Chart Technical Analysis:

People have shown great interest in looking at the 3i Infotech charts on my blog, so I'm adding a weekly analysis of this stock as well.

3i Infotech has formed a Doji star.  After a good rise last week, this week has seen some profit booking, leading to a balanced market with neither the buyers nor the sellers in control.

The week opened at 66.9 and closed at 67.2.  The intra week high and low were 70.25 and 65.2.  This is less than 10% volatility and almost negligible difference between the open and close price, inspite of good volume.

Outlook for next week: The price is expected to move sideways for the coming week.

Technical Indicators:

The price finally peeked above the 50 week moving average after 6 months.  This is a good sign as the stock is struggling to break its sideways trend and rise upwards.  

But the appearance of a doji candlestick shows that the market is not very sure if the price should be pushed beyond the 50 week moving average.  In fact, the price went beyond this line during the week but the price closed below this line.  That's not too optimistic

The stock has slowed its journey towards the oversold levels.  So it might soon turn downwards.  Based on this indicator, the price should move sideways next week, and then fall back in the week after that.  Unless of course, some big news comes in.

Talking of big news, there are rumors that Satyam Mahindra may consider buying 3i Infotech.  This is unconfirmed, but if this happens, 3i Infotech could suddenly be seen soaring high above its current price level.  

Kinetic Motors Weekly: 25-29 Oct'10: Marabozu Candlestick

Kinetic Motors Weekly Stock Chart Technical Analysis:

Kinetic Motors ended the week with a marabozu candlestick.  This shows continued selling throughout the week, and heavy profit booking by the traders and investors.

The week opened at 45 and closed at 37.65, hence losing almost 18% value in just 5 trading days.  The weekly high and low were 45.25 and 37.6.  This is very close to the opening and closing price, telling us that the all through the week, profit booking has been the only thing on everyone's mind.

Outlook for next week: The stock price will fall further.  As this week has had very low volume compared to the past 3 weeks, it can be estimated that the price will not fall at the same speed as this week.  The price is expected to find support between 33 and 37 and close the next week accordingly.


Technical Indicators: 


The price is falling from the oversold levels and into the middle zone.  This depicts continued selling and profit booking in the next week, driving prices downwards.


The volume has lowered significantly.  Hence the speed of fall should get curtailed in the next week.


The Fibonacci level of 50% (36.6) and 38.2% (33.34) should act as the support points for this week. If the price falls further below these points (which is not expected), it most probably won't go below  29.31.

Reliance Comm Weekly: 25-29 Oct'10: Doji Candlestick

Reliance Communications Weekly Stock Chart on NSE Technical Analysis

The NSE weekly chart of Reliance Communications formed a Doji for this week.  It's a picture perfect formation, the stock price closed at less than Re. 1 higher on Friday than what it opened at on Monday.  What a super indecisive time for Reliance Comm!  The market is confused on what way this will move.

The week opened at 179.5 and closed at 180.1.  In between it made a high and low of 185.35 and 173.2.  

Outlook for next week:  The picture is not pretty.  The next week could turn negative price could fall back to end the week negatively.

Technical Indicators:

The moving averages look like creepers hanging from trees in the jungle.  The price has stayed below even the 20 week moving average for most part of the past 2 years.  And that's bad!

This week, it has crossed the 20 week moving average and touched its 50 day moving average.  Historical evidence shows that the stock price does not manage to stay above its 50 day moving average, and so breaking this level to rise upwards is going to take a lot of energy.

The stock is already showing oversold levels.  This means its a possible time for a downhill journey this week.  

The picture perfect Doji candlestick shows excessive indecisiveness amongst buyers and sellers.  Even then, the interest has not waned and the volume of trading is almost double the previous week.

Reliance Ind Weekly: 25-29 Oct'10: Spinning Top Candlestick

Reliance Industries Weekly Stock Chart Technical Analysis:

Reliance Industries weekly stock chart on NSE has ended with a Spinning Top.  This shows an indecisive market where neither the buyers or the sellers are willing to take control.  

The week opened at 1088 and closed at 1096.25, with intraweek high and low of 1110 and 1076.4.  This shows low stock volatility even though the interest in the stock has been good.

Outlook for next week:  The market is expected to move sideways with more volatility than this week.

Technical Indicators:

The moving averages of 20, 50 and 100 weeks have converged. The 20 week average has crossed the 50 and 100 week averages from below.  A big move can be expected soon, hopefully positive, though it does not seem likely in this week.

The stock is flying through the oversold levels already and the blue line has formed an angle to touch the red line already.  This means the price could slow down this week.

RIL Q2 results have been announced with mixed reception.  Some believe they are in tune with expectation and others believe they are lower than expectation.  This means a volatile but indecisive week lies ahead.

Tata Motors Weekly: 25 to 29 Oct 2010: Doji Formation

Tata Motors Weekly Stock Chart on NSE: Technical Analysis

The trading of Tata Motors has reduced this week, and the price has moved sideways.  Next week could see a negative candle being formed (price at end of week will be lower than beginning of week), if the buying interest slows down further, as people will think that the market has reached its top and so begin to sell their positions.

Technical Indicators:

• After a steep rise in the previous weeks, a second doji candle has formed this week.  This shows that buying has slowed down and people are holding on to this stock.  
• This is also visible in the slowed down volume of this stock.  The market is waiting before deciding on whether to buy or sell Tata Motors.  

Airtel Weekly: 25 to 29 Oct 2010: Bearish Candlestick

The market remained indecisive about the Airtel stock price on NSE.  After 4 weeks of sharp fall, the price has found resistance and has moved sideways this week.  The next week does not look very positive, but the sideways could continue and a further fall could remain curbed.  The price should be able to remain supported  and not fall below 310-320.  Even if it does, it will quickly retrace upwards.  If the price goes and remains lower than this price level, alarm bells are ringing!

• Airtel Weekly stock price chart on NSE shows a bearish candlestick.  This is the 5th consecutive week that has ended with a bearish candlestick.
• However, this week's high and low are very similar to the last week's high and low.
• The price has found support just above the Fibonacci 50% level, which is an important support point.
• Coincidently, the current price level is also supported by the 40 week moving average (not shown on this chart).  The moving averages have come close to each other, and the price could enjoy another upswing soon.
• The volume is average compared to other weeks.
• The stock price this week is closing in to its over sold levels, though its not completely oversold yet.  One more week and the stock may hit the bottom and start rising again.  Keep an eye on the oversold levels and a buy signal when it turns.  The daily chart (not shown here) has suggested that the market will try to return upwards on Monday opening.

SBI Weekly: 25 to 29 Oct 2010: Fat Bearish Spinning Top Candlestick

The week for the SBI stock on NSE ended with an indecisive bearish candlestick.  The candle looks similar to a bearish spinning top, though not exactly fitting into the description.

There is also the formation of a long term price channel and the SBI stock price on NSE hit the resistance formed by this and slowly retracted all of October 2010.

Other indicators have also turned bearish.

Seems like another bearish week ahead for SBI.  Hopefully the market will break its indecisiveness soon and a new trend will emerge. I'll keep you updated on the same.

ICICI Weekly: 25 to 29 Oct 2010: Hanging Man Candlestick

The week for ICICI Bank stock on NSE ended with highest volume since May 2010. 

The candlestick for the week has formed a hanging man formation.  The hanging man is not a pretty sight on the chart and it shows that the bears are trying to gain control, though unsuccessfully at the moment.  The candlestick is positive, which also shows that the bulls are against any drop in the price.  

The 20 week moving average is diverging from the 50 week moving average.

The week has ended positively as ICICI Bank posted good quarterly results.  

There is no clear signal right now.  The stock can be traded within the week based on daily or intraday indicators as the price will remain volatile and provide many opportunities for short-term buy and sell.  

The market should open higher on Monday, there might be an opportunity to go long immediately, but wait for market open to confirm.

NIFTY Weekly Analysis 25-29 Oct 2010

This week ended on a not so positive note.  Let's look at what the technical indicators say:

Moving averages are traveling almost parallel. The 20 day moving average has branched out by a few points in the last month.  Overall, no signs of any big change very soon.

Volume is very good, showing high interest in the stock market and trading of NIFTY.  

2 lines of support can be drawn using previous weeks' resistance points.  These two lines can act as support in case NIFTY falls lower below.

Other important indicators point to a negative candle for the next week as well.  Is this going to be a non-optimistic Diwali?