Granules India: Price Range for Nov between 102 and 94

GRANULES INDIA Daily NSE Stock Chart Technical Analysis

The Granules India price closed on Thursday with a note of indecision about what will happen next.  

The price opened at 98.15 and rallied up to 100 to finally close at 98.  

Market Outlook:  

• The price should close above today's close in the next trading period, but not above 99.  If price returns after touching 99, there might be a short term opportunity to short this stock, based on confirmation from other indicators.
• The upper & lower limits of price in Nov '10 are 102 and 94.  Breaking any of these price limits could give important buy-sell signals

Technical Indicators:

• The Doji formation with its body in the lower half suggests heavy selling pressure, but this pressure is weak and the price should not fall back again tomorrow.
• A long term resistance line has turned into support, and vice-versa, after the breakout below the line on 29 Oct '10 as is visible on the chart. 
• We can see the upper and lower limits of the price for this month on the chart as visualized by the rectangle.  The price should play between these limits of 102 and 94 for the month and could give short term opportunities to make money by buying at line of diagonal support and selling at line of diagonal resistance.
• If price goes above 102 or falls below 94 with significant amount of trading, then buy above 102 and go short or sell below 94.  But this needs to be done if other indicators are also confirming these signals. 

(Analyzed on request of Srinivas, Hyderabad)

IVCRL Infras taking help of Support Line

IVRCL Infras Daily NSE Stock Chart Technical Analysis:

The movement has slowed down for the timebeing as the market is awaiting another move on this stock.

Today's market price is at Rs 155.55

Market Outlook:  The price should remain between Rs 164 and Rs 147 until Mid-November.  

If you are in a buy and hold with this stock, its been an unlucky run for you.  This is a good stock to play short.

Technical Indicators:

There is a long term line of resistance for this stock, running from Jan 2008 till date.  The price has tried to break this line multiple times, succeeding briefly once for a few days between June and July 2010, but fell back below this line since then.

There are 3 lines of support emerging from the market low.  Both of these were breached in May and Oct '10 after providing some support to the falling price.

The 3rd line of support crosses the long-term resistance in Jan '11 at a price level of Rs 158.

Keep an eye on any break of this support.  If it happens, the price may continue falling, with subsequent support at 142, 129 and 88.  If price falls beneath support, go short with a target of these support lines.

(Analyzed on request of Nandgopal, Mettur)

Financial Techno: Falling Further

FINANCIAL TECHNO (I) Daily NSE Stock Chart Technical Analysis:

Financial Techno opened higher than yesterday's close but pushed downwards to close below yesterday's close. And such behavior on a day when the markets zoomed upwards by over a 100 points.

The stock opened at Rs 1065 but closed way down at 1026.65.  It also made a deep intraday low of 996.  

Market Outlook:  Financial Techno could fall tomorrow, and in the coming days as well.

Technical Indicators:

The price pushed down throughout the day, and there was a weak rally upwards at the end of the day.

The price is facing resistance from the Fibonacci 50%.

There is also a long term line of resistance drawn from Jan 2008.  This makes it a very strong resistance line and might be difficult to break now that the price has fallen below it.  The price would slide down for the next few days trying to negotiate this diagonal line of resistance as visible on the chart.

However, if the price manages to climb above this line of resistance, it could alternately act as a strong line of support instead.  The results should be out in 2-3 trading sessions.

News:

Financial Techno has run into problems with SEBI over the past couple of months and been disallowed various permissions.  But at the same time, it has expanded base by starting exchanges in Singapore and Mauritius.  In the long term, foreign success could pay off.  But this will take time to show up in the stock price, if at all FT enjoys success in its new ventures.


(Analyzed on request of Prakash, Vidisha)

Airtel Falling: Support @ 321 and then at 318

AIRTEL Daily NSE Stock Chart Technical Analysis:

As discussed in earlier posts on Airtel, the stock continues to fall for the 3rd day today. 

The price opened at 330.2 and closed at 326.15.

Market Outlook:  The price will fall further as well.  The points of support which might stop this fall are at 321 and 318.  If 318 is breached downwards with heavy intraday selling, it time to prepare to go short preferably a couple of days after that.

Technical Indicators:

The selling increased compared to yesterday, which shows that people are interested booking profits at this price level.  This is driving the price downwards.

News:

Watch out for any confirmation on the Qualcomm purchase deal.

As number portability (MNP) comes into play, Airtel is slated to be a big loser as it is the No 1 player.  This can make the numbers shaky for Airtel and affect the stock price negatively and then it might take time to recover from the fall.  Keep an eye on the MNP and its implications.

SBI Rising: Gap-Up: How far will it go?

SBI Daily NSE Stock Chart Technical Analysis:

State Bank of India stock price on NSE jumped and opened gap up.  It ran crazy throughout the day in only one direction - upwards.

The price opened at Rs 3298 and closed at Rs 3433.45, a big jump.

I'd gone long on 25th Oct 2010 at Rs 3220, based on my analysis of 22nd Oct 2010.  This has paid off well, even though it seemed for a moment that my stop at Rs. 3065 will get hit.  But it didn't, and I'm enjoying this bull run thoroughly and waiting for a sell signal to encash my profit!

Market Outlook:  The price will climb up tomorrow as well, but not more than 30 points, and will close below 3465.  After that, the market will go sideways and bounce off the price channel support.

How far will this bull run go? If all other variables remain the same, this will last for about 3-4 more months.

Technical Indicators:

Big gap up and bull run through out the day, a Marabozu candlestick.

Price is moving in a channel as visible on the chart.

Reliance Communications: Lines of Support & Resistance + Long Term View

RELIANCE COMMUNICATIONS Daily NSE Stock Chart Technical Analysis:

Reliance Communication is moving sideways again with a few swings here and there.

It is facing resistance by a 1.5 year old trend line as is visible here.  At 174, there is a moment of decision and the price will either push below and go down, or go above and remain up.

If the market rises, the next points of resistance are 190 and 209.

Looking at a long-term chart, Reliance Communications seems to be set up for a big move soon.  Considering the company and the steed it belongs to, this move should be upwards.  The price could suddenly start rising. Keep an eye on the price levels for this stock.  Expect sudden and big moves.

Gujarat NRE Coke: Price Channel & Resistance @ Rs 70

GUJARAT NRE COKE Daily NSE Stock Chart Technical Analysis:

Gujarat NRE Coke stock price went up today, but continued sideways.  It has remained sideways since mid-May after it fell through its line of resistance.

Price closed at Rs. 63.95.

Market Outlook:  The price is expected remain around today's close.  Tomorrow EOD should close between Rs 64 and Rs. 65.5. 

Technical Indicators:

We can see long term lines of support and resistance on the chart.  

Support is available at Rs 54.  

The strong resistance lies at Rs. 71.  If this resistance is broken it will be a very good opportunity to go long.

Head and shoulders pattern has formed recently.  If the price falls and fails to cross 69, there might be a downfall in the price again.

News:

Gujarat NRE Coke has declared ambitious plans to invest in Australian mines and increase production over the next 5 years.  But this is not expected to have any immediate effect on the stock

Let's see if the quarterly results will do any magic soon.

(Analyzed on request by KP, Mumbai)

Suzlon: Indecisive & Weak for the time being

SUZLON ENERGY Daily NSE Stock Chart Technical Analysis:

Suzlon Energy is moving sideways and the market is wondering what to do with this stock in the near future.

The price opened at Rs 57.4 and closed at Rs 57.75 after moving up and down the entire day.

Market Outlook:  The price will move sideways and remain between 59 and 56.5.  

Technical Indicators:

• Resistance is at Rs 59 and support is at Rs 56.5 and then at Rs 55.  Both these price levels are important to watch.  If and when the market breaks 55 with high trading, there is a short-term opportunity to go short.  The opportunity to go long seems unlikely in near future.
• The price had taken support of its 100 day moving average in the previous low swing.  The price is facing resistance at its 20 day moving average, both shown on the chart as red and blue lines.

News:

• Suzlon is planning to go big in China next year.  This might be positive for the company.  Suzlon is currently facing some litigation on land acquisition issue which can generate bad press for the company.
• The company board has agreed to raise Rs 5000 crores via the share market, so keep an eye on this stock as there could be an opportunity to go long in 2011.  For now, nothing immediate and good is on the cards.

(Suzlon Energy analysis requested by Jaikrishna, Ranchi)