Granules India: Finally Showing Hope

GRANULES INDIA Daily NSE Stock Chart Technical Analysis:

Granules India continued its upward journey for the 5th trading session today, which is a good sign in this otherwise falling market.

Close & CMP: 93.60

Market Outlook:

• Granules India has crossed over its resistance today, which was at 93.  This is a very positive signal and if it remains above 93 for the next day or two, it might give a buy signal.

Technical Indicators:

• After falling below the support, the price came back above its support today.  This is a positive indicator.
• The volume for today is also good compared to the past few trading sessions.
• The price made a spinning top candlestick today.  This is the only point of concern in an otherwise positive looking chart.  The spinning top on such a day means the bears are not inactive on Granules India yet, and there could be an attempt to pull the stock price down again.
• The next couple of days should give us a final idea of where GI is headed, and if we should take a long position on it.

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GRANULES INDIA Daily NSE Stock Chart Technical Analysis

GRANULES INDIA Daily NSE Stock Chart Technical Analysis

Granules India has fallen below its support trendline and is closing lower than the support since 4 consecutive days.  The price is attempting to rise back into the zone.

If the price cannot rise above 94, the situation could get difficult.  If it does rise and close above 94, there might be an opportunity to buy.

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)