Analyzing India

February 2019

Analyzing India

RECLTD: Breakout From An Ascending Triangle

by Milan Vaishnav

Rural Electrification Corporation Limited (RECLTD.IN) This stock has now witnessed a breakout from a bullish Ascending Triangle formation. The breakout occurred above 127.50, but the stock might still witness some pullback, with the zone of 127-130 potentially acting as support. Once the consolidation is out of way, there is a high probability that the momentum will return to the stock. The RSI has marked a fresh 14-period high, which is bullish. It also shows a bullish divergence against the price. The daily MACD remains in continuing buy mode; PPO is still Read More 

Analyzing India

Week Ahead: NIFTY Hovers Around Important Levels; RRG Show These Sectors Likely Out-Performing The Broader Markets

by Milan Vaishnav

In our previous weekly note, we mentioned that the NIFTY was slipping below its 50-week moving average and highlighted the importance of this important weekly level. While the markets experienced continued weakness in the early part of the past week, the middle of the week saw the NIFTY rebounding following eight consecutive days of decline. This pullback halted exactly at the 50-week MA, which is presently at 10791.97. The benchmark index ended at 10791.65, up by 67.25 points (+0.63%) on a weekly basis. The coming week will prove just as important as the Read More 

Analyzing India

Greater Possibilities Of A Breakout In This Stock

by Milan Vaishnav

With the session that ended on Tuesday, February 19, 2019, the Indian headline index NIFTY50 closed in the red for the eighth consecutive day. Amid such a weak environment, there are certain stocks which are showing great relative strength and are strongly outperforming the broader markets. Once such stock that deserves attention is PFC.IN. Power Finance Corp. Ltd (PFC.IN) PFC.IN presently remains under a bullish Ascending Triangle formation. This formation resulted from a price action where the stock formed near similar tops at 108.55 and 110.30 and Read More 

Analyzing India

Week Ahead: Stable Start To The Week Expected; Cracks Might Appear If These Levels Are Not Defended

by Milan Vaishnav

The past week remained quite dismal for the market, which ended in the negative on all five days. After a failed breakout on the daily charts, the NIFTY returned inside the broad trading range and subsequently drifted even lower. The index has been defending the 50-Week Moving Average for over eight weeks now but, following the previous week’s decline, it has ended marginally below this important level. It ultimately ended the week with a net loss of 219.20 points (-2.00%) on a weekly basis. The coming days are likely to define the texture of the markets for the next couple Read More 

Analyzing India

MINDTREE.IN: Good Up-Move In The Offing If This Level Is Crossed

by Milan Vaishnav

While the markets have been suffering from fractured breadth and the NIFTY moved below 10950 (its breakout level) following a strong throwback, the CNXIT index has crawled back into the leading quadrant of the Relative Rotation Graph (RRG). This means that the IT pack is likely to relatively out-perform the broader markets.  With that in mind, the IT pack stock MINDTREE.IN deserves a look. MindTree Ltd. (MINDTREE.IN) After peaking near 1175, the stock saw a corrective move that took down near 749. During this corrective decline, the Read More 

Analyzing India

This Stock May Out-Perform The Broader Markets

by Milan Vaishnav

The Indian market suffered a severe throwback, having broken out above the 10950 mark on Wednesday but returning all those gains by end of the week. The market breadth has not been healthy at all and remains a matter of concern. Amid such turbulence, this stock deserves some attention, as it is showing some signs of an up-move and likely relative out-performance against the broader markets. Jubilant Life Sciences Ltd (JUBILANT.IN) JUBILANT.IN is presently in a symmetrical triangle formation, which it has attempted to break out from Read More 

Analyzing India

Week Ahead: Staying Afloat 50-Week MA Crucial; Market Breadth Remains A Concern

by Milan Vaishnav

With the last day of the trading week remaining a drag, the NIFTY returned all its weekly gains and ended on a negative note. If we look at the daily charts, we can see the NIFTY achieved a breakout by moving past the 10950 level, but had returned all those gains again by end of the week. The headline index went nowhere and ended the week with a net loss of 125.80 points (-1.14%) on a week-to-week basis. On the weekly charts, the index has continued to remain above the 50-Week MA, which is 10775 at present. For the 12th week Read More 

Analyzing India

A Look At Broader Market Charts As Market Breadth Remains A Concern

by Milan Vaishnav

After experiencing a brutal decline that began in September 2018, the NIFTY found support just below the 10000 mark and witnessed a technical pullback. This technical pullback halted near the 10950 level in early December 2018. Over the following two months, the index hit resistance multiple times and has remained unsuccessful in its efforts to move past this level. As the market attempts to reach this level once again and potentially take out this immediate and important resistance area, we need to take a hard look at what it will Read More 

Analyzing India

Week Ahead: NIFTY Set To React On These Lines Post Interim Budget

by Milan Vaishnav

We mentioned in our previous weekly note that, due to expiry of the January series and interim budget, the markets would remain more volatile than usual over the past week. While the expiry day did not bring in any volatility, the last session of the week remained immensely volatile on expected lines. The NIFTY experienced some volatile swings before wrapping up the week with net weekly gains of 113 points (+1.05%).We had also projected that the week would have a wider trading range than usual. While looking at the finer details, we observe that, over the past week, the Read More