Analyzing India

January 2019

Analyzing India

This Pharma Stock Is Set For A Good Move

by Milan Vaishnav

Lupin Limited (LUPIN.IN) LUPIN.IN marked a double top at the 2070-2092 level in October 2016 and has since remained in a corrective downtrend. After trading in a falling channel during this corrective phase and wiping out over 50% of its value, the stock has attempted to find a base in 780-860 range as part of an effort to reverse its multi-month downtrend. The RS Line, when compared against the broader CNX500 index, reflects a similar action, having ended its multi-year under-performance, flattened itself and begun moving up. As a confirmation of the Read More 

Analyzing India

These Charts Show Some Likely Up-Moves Ahead

by Milan Vaishnav

Bharat Petroleum Ltd. (BPCL.IN) Having formed a bottom at 238.55 following a steep fall from 383.80, the stock has since formed gradual higher bottoms. Presently it remains in an Ascending Triangle pattern, which is a bullish formation. The RS Line, when compared against broader CNX500 is rising; it is above 50-DMA and this acts as an confirmation. The PPO has turned positive. The daily MACD has shown positive crossover and is now bullish while trading above its signal line. On the weekly charts, MACD remains in continuing buy mode. The price on both the daily Read More 

Analyzing India

Week Ahead: With F&O Expiry and Interim Budget In The Tow, Markets Set To Remain Volatile

by Milan Vaishnav

In spite of all expectations, NIFTY remained volatile and did not make any directional call over the previous week, oscillating in a defined 230-point range throughout. However, on the weekly charts, the NIFTY has been able to keep its head above the 50-Week MA, which is 10757. Additionally, the market returned all of its gains from the prior week as it ended down 126.40 points (-1.16%). The coming week is set to remain eventful, with the expiry of the current derivative series on Thursday, followed by the presentation of the Interim Budget on Friday Read More 

Analyzing India

NIFTY Energy Sector Looks Up

by Milan Vaishnav

As the Indian equity markets remain under under an area formation, a clear breakout will continue to elude the NIFTY unless it can move past the 10950 level. With the markets still trapped in a range, the NIFTY Energy Index ($CNXNIFTY) provides some interesting observations. The NIFTY Energy Index formed a large double top formation between 2014-2017, breaking out on the upside as it moved past the 10350 level. If we examine the performance of the past several quarters, it can be seen that the index has remained in a sideways trajectory for nearly one and half years Read More 

Analyzing India

Week Ahead: NIFTY Looks At Taking A Decisive Directional Call In The Coming Week

by Milan Vaishnav

The past week saw the market remaining range-bound, oscillating inside a 250-point range and ultimately ending with a modest gain. Though the market did not take any directional call on either side, it saw significant amount of volatility within the defined range. While holding on to the 50-Week MA level, which was 10749 at close, the NIFTY ended the week with gains of 112 points (+1.04%) on a weekly basis. Despite staying range-bound, there are couple of technically important points that should be noted. On the daily charts, the NIFTY rebounded Read More 

Analyzing India

ICICI Securities: Interesting Days Ahead

by Milan Vaishnav

ICICI Securities Ltd. (ISEC.IN) In addition to being the pioneers in the e-brokerage business in India, ICICI Securities is a technology-based firm offering a wide range of financial services including investment banking, institutional broking, retail broking, private wealth management and financial product distribution. The stock has a short listing history. ISEC.IN marked its high on the listing day at 443 on April 05, 2018; since then, it has remained in a falling channel while wiping out over 50% of its value within a couple of months of listing. Some signals have emerged on the Read More 

Analyzing India

NIFTY Mildly Penetrates The 50-Week MA; Moving Past These Levels is Necessary For A Sustained Up-Move

by Milan Vaishnav

It was a volatile end to the week as the NIFTY index oscillated in a 100-point range on Friday, finally settling with a modest loss after rebounding from the lower levels. Just like the week before, no major downsides were seen. The NIFTY just barely managed to pierce the 50-Week MA, which is currently at 10748. After oscillations in a defined range, the headline index NIFTY50 ended with modest gains of 67.60 points (+0.63%) on a weekly basis. The market continues to remain poised at a critical juncture. Despite exhibiting buoyant Read More 

Analyzing India

HDFC Standard Life - Preparing For A Move?

by Milan Vaishnav

HDFC Standard Life Insurance Company Ltd. (HDFCLIFE.IN) This stock has a rather short history. After listing in November 2017, it spent the first couple of months moving higher, then returned all those gains in the following months. It is said that chart patterns are fractal in nature; those patterns are more reliable if they appear on more than one timeframe for the same security. HDFCLIFE.IN seems like a good example of this. It has formed a classical double bottom support, halted its decline and currently remains trapped in a symmetrical triangle formation. These patterns appear in Read More 

Analyzing India

Can the NIFTY Move Past its 50-Week MA in the Coming Week?

by Milan Vaishnav

Throughout the past week, the markets continued to follow the falling trend line pattern resistance. Though no major downsides were witnessed, the NIFTY did not make any major up moves either. The larger part of the previous week saw a significant number of shorts being added, but no short covering came through and the NIFTY settled with a net loss of 132.55 points (-1.22%) on a weekly basis. Despite the amount of shorts that were seen being created in the system, the market still awaits any major up-move. Presently, the NIFTY has ended just below its 50-Week MA Read More 

Analyzing India

Interesting Technical Set-Ups on Container Corp of India and SBI

by Milan Vaishnav

The PSUBank Index has a shown sharp surge in its relative momentum against the broader CNX500 index. This keeps this index firmly in the leading quadrant of the Relative Rotation Graph, where it accompanies the NIFTY Infrastructure Index. The Container Corporation of India (CONCOR.IN) from the Infrastructure index and the State Bank of India (SBIN.IN) from the PSUBank index present interesting set-ups for technical charts. Container Corporation of India (CONCOR.IN) After peaking at 740 in early 2018, the stock has remained under broad consolidation, forming lower Read More