April 18, 2014

Some good weekly charts

ABAN... super breakout above 575

Superb breakout in ATUL

ATUL has given an excellent breakout and is trading at lifetime highs.

Following is the weekly chart... note that stock has low volumes.

April 17, 2014

Stocks making new lows this year

For all this rally there are a lot of stocks which are breaking their recent supports and are practically trading at this years low.

It should be understood that no buying can be done in these stocks.

DLF breaks downside from triangle

DLF breaks downside from triangle

New breakouts today

APOLLO TYRES... stock has more than doubled in past few months and is still a buy. SL 155.

Another similar stock is JK TYRE.

Weekend update

This was a short week... it started a day later and ended a day earlier.

Trend is up with support at 6640. Next week, close above 6820 can see a rally to 7000-7200 levels.

Option writing clues point to support at 6700... apparent resistance at 6800 has vanished.

Intraday analysis

There were 2 buy signals today... one on crossover of 6720F and second on crossover of 6760F.

A question may arise that when the last 2 days trend was down, how could one initiate a long call? The justification for this is that markets (on EOD charts) were very close to support and a bounce was due.

The big bar on 5 min charts (6720F crossover) was a confirmation of intraday bullishness.

Sensex @ 40000

CLSA says that as per technicals the BSE benchmark Sensex is all set for 39,707 level, an upside of over 75 per cent from its present level of 22,330.80 over 12-24 months. 

My view: I am expecting a breakout in 2014/ 2015 and we will have a rally similar to the one in 2003-2008 when the nifty shot from 1000 to 6000.

Also, swing traders and investors will make far more money than day traders. This is true of all markets.

April 16, 2014

New signals

Bullish breakouts

B NIFTY outlook

Trend is up and will reverse on close below 12400 spot.