Analyzing India

November 2018

Analyzing India

Weekly Outlook: NIFTY moves past 50-Week MA; sustenance above that may take Nifty higher

by Milan Vaishnav

The previous week remained much better than expected for the markets, as the benchmark Index NIFTY50 ended the week on a strong note. The week proved to be even more technically important as the NIFTY was able to move past its 50-Week MA, after having resisted that level for seven weeks. The Index has ended the week with net gains of 350 points (+3.32%) on weekly basis. For the month of November, markets have ended with gains of  490.15 points (+4.72%) on a monthly note. Beginning next week and thereafter, the behavior of the markets against the levels of 50-Week MA, which is Read More 

Analyzing India

HDFC Asset Management and Adani Green Energy

by Milan Vaishnav

As the broader and sector indexes continue to consolidate and remain in a broad range, it might be worthwhile to consider grabbing some opportunities outside the indexes. Scanning and looking for stock-specific opportunities is often very rewarding. Two stocks, both of which offer short term momentum and some possibilities of decent up moves, are explored below. HDFC Asset Management Company Ltd (HDFCAMC.IN) HDFC Asset Management Company (HDFCAMC.IN) listed in August 2018; after making a high of 1970, it saw a steep corrective decline which took the stock near 1250 in late Read More 

Analyzing India

Expiry Week Ahead: NIFTY rules below 50-Week MA for seven weeks; up moves likely to remain capped

by Milan Vaishnav

In this short  trading  week, the equities ended the week on a negative note. In a week that saw the Markets moving in the 250-points range, the NIFTY ended the week near its lowest point. The benchmark Index lost 155.45 points (-1.46%) on weekly basis. It was for the seventh consecutive week that the NIFTY has met resistance and has not moved past the 50-week moving average.  The coming week also has the expiry of the current derivative series to deal with;  given the present structure of the charts, we do not expect any meaningful Read More 

Analyzing India

Indian Hotels and Hathway Cables look interesting on Charts

by Milan Vaishnav

The previous week has been very volatile for the NIFTY as the benchmark index remains in the middle of the 150-point turbulent zone of 10600-10750. Two stocks, The Indian Hotels Company Ltd., and Hathway Cable & Datacom Ltd look interesting on the Charts. The Indian Hotels Company Ltd. (INDHOTEL.IN) The stock marked a high of 160.45 in early 2018 and, since then, has traded in a broad range. After marking a lower high at 155.50 in April 2018, the stock has remained in a corrective downward sloping channel while making intermittent failed attempts to break out from that Read More 

Analyzing India

Week Ahead: NIFTY Has Multiple Overhead Resistances to Deal With in This Short Week

by Milan Vaishnav

The Indian Equity Markets spent the entire week on expected lines. The previous week was expected to be turbulent, and the zone of 10600-10750 was set to pose stiff resistance to the Markets. On these analyzed lines, the NIFTY continued to remain volatile all throughout the week. The benchmark Index finally ended the week posting a modest gain of 97 points (+0.92%). NIFTY faced stiff resistance over the previous week in the 10600-10750 zones and failed to decisively extend the pullback.  This 150-point zone of 10600-10750 will continue to remain critically important to watch Read More 

Analyzing India

These Two Stocks Present Short-Term Opportunities

by Milan Vaishnav

Potential Trend Reversal in SCHAND.IN S Chand And Company Limited (SCHAND.IN) is one of the leading publishing houses in India. In May 2017, the stock listed at 673. Over the following 17 months, the stock saw its value erode by ~73% as the stock remained in a secular decline. In October 2018, the stock arrested its prolonged decline as it attempted to form a base around the 180-185 levels. The prices are presently seen trading in a sideways trajectory as the decline has stalled. A couple of signals have emerged which indicate that the stock might have completed its decline and may Read More 

Analyzing India

Stock-in-Focus: Despite Some Consolidation, This Banking Stock is Likely to Make Decisive Moves

by Milan Vaishnav

Over the last four to five weeks, the NIFTY Bank Index ($BANKNIFTY) has not only out-performed the Public Sector Bank Index among the banking space, but it has also seen sharp improvement in relative momentum against the Broader Market Index $CNX500. Many of the Nifty Bank Index components are interestingly poised. A particularly attention-grabbing one is Axis Bank (AXISBANK.IN), which is readying itself for a decisive move over the coming days. Axis Bank (AXISBANK.IN) is one among the top 5 components of the NIFTY Bank Index, having 8.88% weight in the Index. That being said, let us Read More 

Analyzing India

Weekly Outlook: Important for NIFTY to Move Past the 10600-10750 Zones; May Remain Turbulent At Higher Levels

by Milan Vaishnav

In our previous Weekly note, we forecasted that the markets would not make any major headway in the truncated week due to the holiday festivities. As expected, the NIFTY spent the week in a narrow range and showed no directional bias. The benchmark index ultimately went nowhere, ending the week on a flat note while gaining 32.20 points (+0.31%) on a weekly basis. The previous week had just three full-working days if we discount Wednesday’s one-hour Mahurat Trading session. (Mahurat Trading session is a one-hour trading session that results in Read More 

Analyzing India

Interesting Trade Set-up; Breakout expected

by Milan Vaishnav

NIFTY Infrastructure Index ($CNXINFRA) has seen considerable improvement in its performance over past couple of weeks. After relatively under-performing for the most part of 2018, this Sector Index has shown strong improvement in its Relative Momentum when bench-marked against the broader Index NIFTY500 ($CNX500). It is seen continuing with its improvement in coming weeks. Within this NIFTY Infrastructure Index ($CNXINFRA), there are couple of interesting trade set-ups that catch our attention. One such set-up is observed in Larsen & Toubro Ltd (LT.IN) The stock Read More 

Analyzing India

Week Ahead for Nifty: Markets likely to remain broadly range bound amid truncated week and festivities

by Milan Vaishnav

In our previous Weekly Note, we had mentioned that despite remaining structurally damaged, the Equities might witness a technical pullback. The levels of 10026 which was the Weekly 100-Week MA last week (which is 10050 presently), acted as a support for the Markets. The benchmark Index NIFTY50 witnessed a much overdue relief rally and it ended the week with gains of 523 points or 5.21% on a Weekly basis. There was immense volatility in the Markets all during past several weeks. This is seen from the fact that as of Month ending October, the NIFTY had Read More 

Analyzing India

Follow-Up on Stock discussed on Oct 30 because of Corporate Action

by Milan Vaishnav

On October 30, we discussed on three stocks on NIFTY Metal Index ($CNXMETAL) that deserved our attention. This note can be found here. There was a Corporate Action yesterday, i.e. on Oct. 31, in the stock Hindustan Zinc Limited (HINDZINC.IN) that of a Dividend payout. This has resulted into adjustment of the price series. The Details of the referred Corporate Action on HINDZINC.IN can be found here. Because of this, there is a change in levels, the expected price targets, etc. Few trend lines also got disturbed and needed to be adjusted. Note that the primary Read More