Unitech Lines of Support & Resistance

UNITECH Daily NSE Stock Chart Technical Analysis:

Unitech gapped-up today with the overall market trend. 

Market Outlook:  The sudden gap up does not seem sustainable and cannot be considered reversal in trend as of yet.

Based on Tuesday's market, there might be a buy signal, I'll try and update the call tomorrow.

Technical Indicators:

• There are long term lines of support and resistance on Unitech.  Currently, the price will face resistance around Rs 92 and support near Rs 81.

• If it breaks any of these levels for more than 3 consecutive days, it can be considered that the price will remain in the new price channel for some more time.

(Analysis requested by Rajesh, Raipur)

Hero Honda Falls as analyzed: Gap Down

Hero Honda Daily NSE Stock Chart Technical Analysis:

In my Friday post, I had analyzed that Hero Honda will fall on Monday and going short with a target of 1800-1820 on market open is a good idea.  

The market today opened at 1841 and fell to 1815 before closing at 1838.  

Market Outlook: The price will fall further tomorrow but the fall won't be as deep as today.  

If you did not exit the short position between 1815 and 1820 today, keep an eye on the price tomorrow and plan to exit for a short term profit.  

Depending on market tomorrow, I might hold on to a small quantity of the stock to sell even further below, if tomorrow I get confirmation about a possible fall on Wednesday.

Technical Indicators:

• Not exactly, but its close to being a dragonfly doji today.  It is not too significant but denotes that tomorrow the slide in price will slow down.  

• Volume has watered down which also shows the price wont crash tomorrow, will only slide down slowly.

• 250 day moving average is a line of support, around 1778 levels.

3i Infotech: Support at Rs 65-66, Watch out for Rs 70

3i Infotech Daily NSE Stock Chart Technical Analysis:

3i Infotech made a weak rise today with an inside bar.

Market Outlook:  Tomorrow should be another sideways movement with a possible lower close than today.  The price has good support at Rs. 65 - 66 levels.  Watch out for the Rs 70 price level.  If this is broken and there are positive signals on successive days, it might be a good time to go long on 3i Infotech.

Technical Indicators:

• Price has met resistance at the 250 day moving average.
• A price channel between Rs. 65 and Rs. 70 has formed.  Price could fall tomorrow but will find support between 65 and 66.  
• Volume is very low today inspite of rise.  The market seems not very interested in a rally.
• The price briefly pierced through the psychological level of 70 but returned back and closed below it.  

Kinetic Motors Trend Triangle

Kinetic Motors Daily NSE Stock Chart Technical Analysis:


Kinetic Motors rose today back today after a week of falling, to form a piercing candlestick pattern.


The price opened at 38 and closed at 39.55.  During the day, there was some selling pressure as the price dipped to 36.8, but it quickly moved back during the 2nd half of the day and closed positive.


Market Outlook: Price should continue to rise tomorrow


Technical Indicators:

• Trend Triangle: The market remained within the triangle and if it rises tomorrow, it'll break out of the diagonal resistance
• Piercing Candlestick pattern with good volume: Positive signal
• RSI turning upwards from midpoint: Good signal
• Closing above 20 day moving average after closing below it on Friday: Positive signal
• Fibonacci support at 50% (Rs 37.77) retracement levels, tomorrow's support could be 61.8% (Rs. 40).

Airtel Gap-Up

Airtel Daily NSE Stock Chart Technical Analysis:

Airtel jumped up and was one of the big gainers along with NIFTY today.

The price opened gap up at 329, whereas yesterday's open was 328.  The price rose steadily throughout the day and closed at 335.3.

Market Outlook:  It is not likely that the market will be able to continue today's pace tomorrow, unless people jump in thinking this is a rally, in which case it might be positive tomorrow as well and slow down the day after.  In any case, definitely sideways.

Technical Indicators:

• The market formed a positive marabozu candle today, price rising throughout the day.
  
• The volume is quite low, even though the price gapped up and rose throughout the day.  Too many people didn't participate today, just a few people changed hands at higher prices which the market overall seemed to not consider very believable.
  
• Moving averages have converged and after 2.5 months, the 20 day MA is about to cross the 50 day MA.  That's a good signal.
  
• The price got support near Rs. 220, where it made a double bottom.  This is also a previous consolidation level of the market, and it is positive that the price didn't break through and went back up again.
  
• The price has broken a trend line triangle.  The diagonal should serve as a support line for the next 3-4 days.

Reliance Industries Big Fall Today

Reliance Industries Daily Stock Chart Technical Analysis:

On a day when the market jumped up like an acrobat, Reliance Industries turned Humpty Dumpty and "Had A Great Fall".

The market opened at Rs 1121, quite higher than yesterday's close of Rs 1096.25.  But it fell throughout the day and closed at Rs 1093.20.

Market Outlook: The fall may continue tomorrow but in worst case scenario, will find support near Rs. 1065.

Technical Indicators:

• Big negative marabozu candle with almost no shadows indicate continued selling and profit booking throughout the day.

• The volume is high, showing high interest in booking profits at today's price level.  The market seems to believe that Rs. 1100 + was a good price to book profits and exit RIL.

• The 50 day moving average crossed both the 100 and 200 day moving averages on 22 Oct 2010.  Same time, the 100 day moving average crossed the 200 day moving average too.  Both shorter term averages crossed the longer term averages, which is a positive signal for the stock price.

• There is a price channel forming since Aug-Sep 2010 as is seen on the chart.  The price is moving in a volatile fashion within this channel.  

NIFTY Gap-Up Today

S&P CNX NIFTY Daily Stock Chart Technical Analysis:

NIFTY created a gap-up today.

The index opened at 6092.3, a gap-up of a whopping 74.6 points!  The trend triangle that was discussed in Friday's post was completely ignored by the NIFTY today.  It jumped above both trend lines and closed at 6117.55.

Market Outlook:  Today's market jump might not remain sustainable unless the index rises tomorrow as well and the trading volume increases.  Don't go bonkers and jump into the market thinking this is a bullish trend, there is no confirmation yet.

Technical Indicators: 

• The index has taken support of the Fibonacci 78.6% after twice taking support from the 61.8% level.
  
• The only point of concern today is that the total volume traded was not only lower than the past 4 days when NIFTY was in a free wheelie downfall, but also lower than the past entire two months of Sep and Oct '10.  This is significant to note because though the market jumped up like a gymnast on a mat, it traded much lower than the average.