Sunday, January 24, 2021

What Banknifty Chart Trying To Say?

Friends, everyone knows and seeing as the market hitting lifetime high back to back. The market has recovered all sell-off of lockdown and now showing strength for the long term. If we compare Nifty and Banknifty, then the bank index has taken too much time to cross its lifetime high i.e. 2+ months. That means all major banks are overbought and it is a time of profit booking. As per chart analysis, Banknifty has given bearish confirmation on a daily plus weekly time frame. Let’s see in dip analysis.

Technical Overview of Nifty: On the daily chart, nifty shows some zic-zac and this zic-zac means Double Top. In the last two days, nifty has shown a fall of 350 points and the next support is around 14300. There are two supports on a chart that is previous Higher-Low and 20 DMA. If it sustains and bounces from the same levels then there are chances of a fresh rally.

On a weekly chart, two Doji has formed i.e. neutral sentiments at a lifetime high, so rally or fall can come. Let’s hope for the best and prepare for the worst.


Technical Overview of Nifty Bank: Come to the banknifty chart, it has taken resistance from a lifetime high. On the last trading session banknifty has shown a fall of 1000 points. Also given breakdown confirmation of Double Top and broken down 20 DMA. As we discussed above banks are ready for profit booking and the index has given negative confirmation on the chart.


On the weekly chart, Evening Star near resistance. What is that mean? What index trying to say?




----------------------------------------------------------------------------------------------- Disclaimer: The contents produced here are purely for educational purposes. They should not be construed as buy/sell recommendations. I am not a SEBI registered Analyst or Investment Advisor. Readers are advised to consult their Investment advisor before taking any decisions based on the above write-up.
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Monday, October 26, 2020

Is It Right Time To Go With HFDC Life Insurance Ltd. ?

Today the market has fallen drastically due to second lockdown news in FRANCE, SPAIN, and ITALY. In this market storm, the stock price of HDFC Life Insurance has closed in green and at a day high. If we go through the last two days volume, so it is double the average volume. The stock is looking gorgeous as per Fundamental and Technical analysis.

Technical Overview (Weekly Chart): On a weekly chart picture is clear, the stock price has made a lifetime high around 650 and fallen from the same levels trice. However, if we see a sequence of falls and rise, then it is clearly showing 85% completion of Inverted Head and Shoulder. Right now the second shoulder is not completed, but it is indicating rally till lifetime high. Major bullish chart pattern on a large time frame, it is a good sign of long term.



Daily Chart: Now come to the small picture and price is trading in a down channel. It is trading below the 20 & 50 DMA and many times resisted from the same levels. Today price has crossed and closed above both DMA, and volume is good. If we see the line chart then the stock has made Double Bottom and now ready for a breakout. Once it breaks the previous Lower High, then the trend will change and there is one small hurdle around 610 between lifetime high.




Fundamentals:

The company is providing life insurance and due to COVID-19 demand has increased. The company is virtually debt-free and expecting good quarterly results. The return on equity is around 20%.




----------------------------------------------------------------------------------------------- Disclaimer: The contents produced here are purely for educational purposes. They should not be construed as buy/sell recommendations. I am not a SEBI registered Analyst or Investment Advisor. Readers are advised to consult their Investment advisor before taking any decisions based on the above write-up.
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Saturday, August 22, 2020

Inverted H&S On Weekly Chart In SBI Bank!

Friends if we see and compare large-cap stocks then many have recovered after big fall except banking stocks. The simple way for cross verifying is Nifty and Banknifty, nifty is trading above its 200 MA and Banknifty still trading below or too far.

SBI Bank is one of the best domestic bank and having good fundamentals. Let's see a chart analysis of it.

Technical Overview of the monthly chart: In the month of March while COVID starting SBI has broken its important monthly support of 230. Next month It has to spend the whole time between 198 to 175 and then again a fresh fall from month May. Finally from June market has stopped to react on COVID news & crisis and at the same time, SBI bank has taken support from month support i.e. 150. Now next resistance is around 230 and stock is showing gradual positive strength.

 

Weekly chart: As on weekly chart Inverted H&S has formed, it is the strong signal of a trend change. We are waiting for a breakout confirmation with good volume. As per H&S, our target will be 250. In last to last week stock price has crossed the resistance but not closed above. Let's wait patiently or you can add some quantities before the breakout.

Daily chart: On smaller time frame stock is trading in a Bullish Ascending Triangle and on 12th August stock has given breakout to a triangle with double volume. In last week the price has retested its trend line support plus 20 MA. Stock is continuously taking support from 20 MA and ready to touch 200 MA.

As per our studies stock is ready to fly and we are expecting 230/250 levels.



----------------------------------------------------------------------------------------------- Disclaimer: The contents produced here are purely for educational purposes. They should not be construed as buy/sell recommendations. I am not a SEBI registered Analyst or Investment Advisor. Readers are advised to consult their Investment advisor before taking any decisions based on the above write-up.
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Tuesday, July 7, 2020

Expecting 15-20% Gain In Ruchira Paper Ltd.


My purpose is only to share knowledge through articles, and many peoples have taken as advice. I am also a common person, doing chart analysis and sharing with you. Chart analysis means it is only price moment predictions; it may be correct or wrong. However, as per previous articles, our prediction ratio is good. To learn & earn, add your own analysis too.

Ruchira Papers Limited is engaged in the manufacturing of Kraft Paper and Writing & Printing Paper.

Technical Overview of RUCHIRA: If we see a history of the stock price from January 2020 then it has shown rapid fall i.e. CORONA spreading period. Around the end of March, the stock has taken rest near the monthly support i.e. levels of 30. From this bottom stock price has gained till 50 rupees i.e. 65% just in 12 trading sessions. After this rally of 65%, the stock has made bottom around 34 rupees i.e. Higher Low and next top is around levels of 65 i.e. Higher High. Near levels of 65 stock has given confirmation of Bearish Engulf near resistance plus 200 DMA and fallen from the same. Today it has made Bullish Engulf near support and volume is too good. So now we can say that stock has started the trend of Higher-High and Higher-Low.

We are bullish on this stock from the current levels and expecting 15 to 20 percent rally.


Fundamentals:

The company has reduced debt.
Stock is trading at 0.45 times its book value.
Stock is providing a good dividend yield of 4.61%.
The company has good consistent profit growth of 21.57% over five years.



----------------------------------------------------------------------------------------------- Disclaimer: The contents produced here are purely for educational purposes. They should not be construed as buy/sell recommendations. I am not a SEBI registered Analyst or Investment Advisor. Readers are advised to consult their Investment advisor before taking any decisions based on the above write-up.
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