SBI on Support Line @2574

STATE BANK OF INDIA Daily NSE Stock Chart Technical Analysis:


SBI began its fall in early November 2010, and has been continuously falling since (except for a small correction a few days back).

Close & CMP: 2600

Market Outlook:

• The price broke through 2 levels of support since the beginning of 2011.
• The price has found support at 2574.
• Next week, it seems like the price will go up again or remain sideways, after reaching this support level.
• But overall, I am not bullish on SBI anymore for the coming few weeks.

Technical Indicators:

• Today the price movement formed a spinning top candlestick and also made an intraday low on its support line.  Both of these indicate that this support is showing strength and could prevent further downfall of the SBI stock price.
• The price made 2 bearish breakouts in the last 4 days.  The price fell through its one-year old diagonal support line.
• The stock is deeply underbought, indicating that there could be a rise or atleast the further fall could be stopped for a few days.
• Only if the price goes above 2770, one can look at SBI positively again for purchase.

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STATE BANK OF INDIA Daily NSE Stock Chart Technical Analysis

Reliance Industries: Stuck in the Price Channel

RELIANCE INDUSTRIES Weekly NSE Stock Chart Technical Analysis:


Reliance Industries is still continuing the sideways journey it began in May 2009.  The price has remained stagnant within a Rs 260 range (Rs 1175 - Rs 915) since the last 18 months.

Close and CMP: 1065.

Market Outlook:

• No big move is expected in the coming week, the price will again remain range bound, and could reach an intra-week high of 1110 before closing below it.

Technical Indicators:

• The past two weeks have ended in Doji candlesticks, showing an indecisive trend where the market is trading Reliance Industries in both directions at the same time.
• The weekly volume doubled but the price closed near the last week's close.
• The resistance is at 1116 and the support is at 990.  If the price closes above 1116 or below 990, consider that the price will run quickly in the direction of the breakout.  If the breakout happens, be ready to trade it, is sure to result into a lot of profit.

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RELIANCE INDUSTRIES Weekly NSE Stock Chart Technical Analysis

Asian Paints: @ 50% Retracement

Asian Paints has been rising since beginning of 2009 within a price channel

ASIAN PAINTS Daily NSE Stock Chart Technical Analysis:

Asian Paints is moving within a price channel since early 2009.  The stock price hit its resistance on 23 Dec'10 and is now falling.

Close & CMP: 2776

Sentiment: Bearish

Market Outlook:

• The sudden single day fall is due to the big fall in NIFTY on the same day, otherwise the fall would have been smaller.
• The price has found support at 2756.  But there is likelihood that the price will fall further to find support at 2698.  
• Closing below the diagonal support line could mean that the stock is losing its bull trend and might fall or turn sideways.

Technical Indicators:

• There are long term lines of support and resistance, forming a price channel for Asian Paints' bull run since early 2009.
• Currently, the price has retraced to its 50% Fibonacci levels and found support there.
• The 61.8% Fibonacci retracement crosses the support at 2698, making this number an important support point.
• The stock is priced quite high and is up by about 450% in 20 months.  Not a very good time to take a long-term position in Asian Paints, I doubt if it will continue rising at this pace in 2011, or will be able to rise much at all.

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ASIAN PAINTS Daily NSE Stock Chart Technical Analysis

Educomp Solutions: Seeking Support

EDUCOMP Daily NSE Stock Chart Technical Analysis:


Educomp lost in a single day what it had gained in 10 preceding days.

Close & CMP:  511.50

Sentiment: Bearish

Market Outlook:

• The price has made a big single day fall and is currently resting on support.
• There is a possibility that the price may make an upward correction, but there is also a possibility that it may fall below the current support.
• The next level of support is available at 490.  
• If Educomp hits 490 and NIFTY improves, then we should have a buy opportunity on this one at that time, as the stock price could start climbing upwards again after hitting 490 if market is overall performing well.
• Falling below 490 could be dangerous for everyone in a long position on this stock.

Technical Indicators:

• The price had a big single day fall forming a marabozu candlestick, but the trading volume is not too high.
• The price managed to close at its available support level, which is a good sign.
• The momentum is falling and is mid-way, so not much of a signal available from there; but there are chances of further fall due to this falling momentum.

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EDUCOMP Daily NSE Stock Chart Technical Analysis