BraViSa TempleTree-India Market Calls
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Mid Cap out performs the broad markets.
Nifty Mid Cap & Junior Mid Cap out perform the broader and major market averages as the bullish trend continues unabated. Basic Materials, Industrial and Utilities take charge on the sector side today. Cement industry leads the industry groups for several days now, while the large caps are not giving considerable moves, mid caps in this segment like Madras Cements, Shree Cements and Sagar Cements continue their journey on the bullish side.
On the Big Money Channel, today we have Sagar Cements and Mount Everest come out as leaders with above 50% volume growth and their EPS and PRS ranks staying above 80. Among the both Sagar cements has a better fundamental strength whereas its technicals are in the side ways pattern. Whereas, for Mount Everest both are strong and the stock is in the bullish trend from the level of 57.00 on the daily & from 73.00 on the weekly. Both the time frames are trending bullish. Both the stocks have better chances of giving new highs in the coming days.
The New High/ New Low index too has tilted itself fully towards the bulls side with a 18/1 count today, giving a big thumbs up for the bullish market. The current bullish momentum is likely to continue and the NIFTY has all the chances of reaching its next resistance at 5400.
Nifty Mid Cap & Junior Mid Cap out perform the broader and major market averages as the bullish trend continues unabated. Basic Materials, Industrial and Utilities take charge on the sector side today. Cement industry leads the industry groups for several days now, while the large caps are not giving considerable moves, mid caps in this segment like Madras Cements, Shree Cements and Sagar Cements continue their journey on the bullish side.
On the Big Money Channel, today we have Sagar Cements and Mount Everest come out as leaders with above 50% volume growth and their EPS and PRS ranks staying above 80. Among the both Sagar cements has a better fundamental strength whereas its technicals are in the side ways pattern. Whereas, for Mount Everest both are strong and the stock is in the bullish trend from the level of 57.00 on the daily & from 73.00 on the weekly. Both the time frames are trending bullish. Both the stocks have better chances of giving new highs in the coming days.
The New High/ New Low index too has tilted itself fully towards the bulls side with a 18/1 count today, giving a big thumbs up for the bullish market. The current bullish momentum is likely to continue and the NIFTY has all the chances of reaching its next resistance at 5400.
As many results for the 3rd Quarter keep rolling out, there are very few numbers from them which have some surprises in them with superior growth percentages. Among the toppers in today’s results are Cholamandalam Investments, Usha Martin, Satyam Computers & Finolex cables. The biggest disappointment is from SPARC, which has reported -507.37% growths on EPS continuing its negative results for the fourth consecutive quarter.
Let’s go into details of the toppers and look if there are some possible trade opportunities in them.
Colamandalam Investments & Finance: The Company has reported sales of 421.48 Cr which is a neat 59.97% increase to its same quarter of the previous year. EPS 3.40 which is showing a steady rise since 5 quarters now has grown 473.48%, this stupendous growth rate has put this stock into the top league with an EPS raking of 93.59 among the BTT tracking index stocks. EPS ranking of above 80 among our list of stocks means this stock has a potential for a long trade to look for in its charts. Sales and Net profit growth rank is at 94.30 adding to the stocks fundamental strength.
This stock belongs to the Finance – Leasing hire purchase Industry group which has an Industry group ranking of ‘A’, which is in the top 87-93% among our listed industry categories, this is plus to the stock. Fund representation ranking is at ‘C+’, which means the stocks fund holding among the top 53-60% range, this ranking though not so very attractive is expected to increase in the coming months.
Funds buy sell is not very attractive with 5 funds participating in the buy sell activities which are at 117907 shares on the buy side and 130466 on the sell side. Among the biggest buyer is DSP Black Rock Micro Cap Fund and the top holder is Reliance Banking Fund holding 1.19% of the stocks market cap.
Technicals for the stock shows that it has already began attracting investors since December 2011. The daily charts have given a Value long buy at 114.50 and has reached its target at 143.75 within three weeks from entry and is now trending bullish. On the weekly there was a Trend long trade at 145.00 after the prior week had a huge volume jump of 444% in the weekly charts. Current weeks move will take the stock into a non trend zone on the weekly due to the changeover of direction by the EMA’s. Here is an opportunity lying to be taken, the stock will have a pull back since it is non-trending now and that will give a good resistance, which can be used as a pivot to trade long when breached. So, this stock is a candidate to be on our watch list and tracked regularly.
Patience and regular home work pays rich dividends, nothing comes free without efforts. Let’s look for a nice profit opportunity in this stock shortly.
Reports about other stocks will follow in the next posts. Have a nice trading experience, be with it and you love doing it, you get it.
Let’s go into details of the toppers and look if there are some possible trade opportunities in them.
Colamandalam Investments & Finance: The Company has reported sales of 421.48 Cr which is a neat 59.97% increase to its same quarter of the previous year. EPS 3.40 which is showing a steady rise since 5 quarters now has grown 473.48%, this stupendous growth rate has put this stock into the top league with an EPS raking of 93.59 among the BTT tracking index stocks. EPS ranking of above 80 among our list of stocks means this stock has a potential for a long trade to look for in its charts. Sales and Net profit growth rank is at 94.30 adding to the stocks fundamental strength.
This stock belongs to the Finance – Leasing hire purchase Industry group which has an Industry group ranking of ‘A’, which is in the top 87-93% among our listed industry categories, this is plus to the stock. Fund representation ranking is at ‘C+’, which means the stocks fund holding among the top 53-60% range, this ranking though not so very attractive is expected to increase in the coming months.
Funds buy sell is not very attractive with 5 funds participating in the buy sell activities which are at 117907 shares on the buy side and 130466 on the sell side. Among the biggest buyer is DSP Black Rock Micro Cap Fund and the top holder is Reliance Banking Fund holding 1.19% of the stocks market cap.
Technicals for the stock shows that it has already began attracting investors since December 2011. The daily charts have given a Value long buy at 114.50 and has reached its target at 143.75 within three weeks from entry and is now trending bullish. On the weekly there was a Trend long trade at 145.00 after the prior week had a huge volume jump of 444% in the weekly charts. Current weeks move will take the stock into a non trend zone on the weekly due to the changeover of direction by the EMA’s. Here is an opportunity lying to be taken, the stock will have a pull back since it is non-trending now and that will give a good resistance, which can be used as a pivot to trade long when breached. So, this stock is a candidate to be on our watch list and tracked regularly.
Patience and regular home work pays rich dividends, nothing comes free without efforts. Let’s look for a nice profit opportunity in this stock shortly.
Reports about other stocks will follow in the next posts. Have a nice trading experience, be with it and you love doing it, you get it.
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Nifty nearing resistance. What next?
One of the early indications that a market is getting set for a bullish run from a market is, 'The market will gap lower and then close higher for the day. It will do this over and over again.' We can see this happening before us last Friday and Wednesday. The surge in the indices continued, but we see volumes getting dried up as the Index moves closer to its immediate resistance at 5400.00. With the present indicator strength one can conclude that the next level of 5550.00 has a possibility.
Weakness can come, and that will be a buying opportunity for short term traders. Value zone for tomorrow is 5165 - 5048, buying can be done in this region for short term gains where reward to risk will be excellent.
New High / New Low index is rising on the bullish side. A steady increase in stocks giving new highs have been recorded for the past few days. The count for today is 38 new highs and 1 new low.
Cements lead again with 8 out of 15 stocks listed in that space registering New highs, Banks - Private Sector with 3 stocks out of 17 stocks at a New High, Finance - Housing has 2 stocks out of 6 stocks registering New Highs, followed by Auto ancillaries with 5 stocks at New high out of 32 stocks listed in that industry.
New High / New Low is a highly useful index to follow for trading the best stock of the top performing Industry group. A new high is always followed by several such highs in the coming days as the momentum keeps pushing the stocks price up and up.
Mid Caps are doing an excellent rally while on the sectors side, Basic Materials, Industrial, Financial and Consumer Services out perform the major averages. Among the sectors apart from Utilities all the other sectors have closed positive.
One of the early indications that a market is getting set for a bullish run from a market is, 'The market will gap lower and then close higher for the day. It will do this over and over again.' We can see this happening before us last Friday and Wednesday. The surge in the indices continued, but we see volumes getting dried up as the Index moves closer to its immediate resistance at 5400.00. With the present indicator strength one can conclude that the next level of 5550.00 has a possibility.
Weakness can come, and that will be a buying opportunity for short term traders. Value zone for tomorrow is 5165 - 5048, buying can be done in this region for short term gains where reward to risk will be excellent.
New High / New Low index is rising on the bullish side. A steady increase in stocks giving new highs have been recorded for the past few days. The count for today is 38 new highs and 1 new low.
Cements lead again with 8 out of 15 stocks listed in that space registering New highs, Banks - Private Sector with 3 stocks out of 17 stocks at a New High, Finance - Housing has 2 stocks out of 6 stocks registering New Highs, followed by Auto ancillaries with 5 stocks at New high out of 32 stocks listed in that industry.
New High / New Low is a highly useful index to follow for trading the best stock of the top performing Industry group. A new high is always followed by several such highs in the coming days as the momentum keeps pushing the stocks price up and up.
Mid Caps are doing an excellent rally while on the sectors side, Basic Materials, Industrial, Financial and Consumer Services out perform the major averages. Among the sectors apart from Utilities all the other sectors have closed positive.
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Why has Hindustan Unilever turned down in price?
Few days before result announcement, HUL picked up fancy and the media was abuzz with more expectations from this company in its 3rd quarter results. As its parent company gave hints of the Indian arm posting double digit growth, expectations flew high from the considerable 8.5 % increase which the market was in expectation till then. In expectation the stock priced soared and as soon as the result was announced as the reality got revealed.
Yet the stock held on to its previous lows at 374 levels giving a higher base formation. The stock is trending bullish on the weekly chart with high strength on its indicators. Whereas, the daily chart is non-trending since 7th Jan12. We have been running long position on the pullback with stop at 365.15, which the stock has managed to hold and the position has got a good add on too.
Now lets go into the fundamentals and see what is in store for this stock. Dec11 results saw sales increase at 15.79%, EPS growth of 19.46%, TTM EPS growing at about 20% year-on-year. The EPS rank of the stock is at 64.41, which shows that there are about 35.59% of companies in our ranking list are better than HUL in earnings growth. An EPS rank below 80 is not considered as a strong stock. The Price Relative Strength ranking for the stock is at 91.70 which are very good for the stock. Sales & Net Profit ranking is at 58.72, which is again a setback. HUL belongs to the Personal Care Industry group which has a A rating in our Industry Group rankings. This puts the Industry at the 87 93% slab, which indicates that the Industry is very strong both in its price relative strength and EPS growth. This gives a clear indication that HUL is not the strongest stock in the Industry group.
HULs Mutual Fund holdings rank has a D grade; it represents the 20-40% slab. This again indicates that the stock has lost its favor among Fund managers. For the December 2011 data fully available we have 33,82,965 shares on the buy side and 26,99,814 shares on the sell side with 156 funds participating in the stocks transactions for the month of December 2011. Quarterly record of Mutual Fund transactions in the stock are about 1.00 Crore shares on the buy side and above 81.50 Lakh shares on the sell side for the Oct-Dec quarter. Though the buyers are more in the stock, it does not show much strength.
If one of the best stocks of our country is not a favorite among fund managers and is not having a good rank from the Industry group which enjoys high rankings, which are the stocks that are good in this Industry? The top stocks as per current data are Godrej Industries, Godrej Consumer products and Marico have their EPS ranks above 80 and are comparatively very strong than HUL.
On the technical side HUL enjoys strength as the stock is in a bullish trend in the weekly chart. Long trades have already been established, while the stock is holding in the value zone now. There are chances for a move up along with the markets, but the next move up will attract more sellers than buyers in the stock.
Few days before result announcement, HUL picked up fancy and the media was abuzz with more expectations from this company in its 3rd quarter results. As its parent company gave hints of the Indian arm posting double digit growth, expectations flew high from the considerable 8.5 % increase which the market was in expectation till then. In expectation the stock priced soared and as soon as the result was announced as the reality got revealed.
Yet the stock held on to its previous lows at 374 levels giving a higher base formation. The stock is trending bullish on the weekly chart with high strength on its indicators. Whereas, the daily chart is non-trending since 7th Jan12. We have been running long position on the pullback with stop at 365.15, which the stock has managed to hold and the position has got a good add on too.
Now lets go into the fundamentals and see what is in store for this stock. Dec11 results saw sales increase at 15.79%, EPS growth of 19.46%, TTM EPS growing at about 20% year-on-year. The EPS rank of the stock is at 64.41, which shows that there are about 35.59% of companies in our ranking list are better than HUL in earnings growth. An EPS rank below 80 is not considered as a strong stock. The Price Relative Strength ranking for the stock is at 91.70 which are very good for the stock. Sales & Net Profit ranking is at 58.72, which is again a setback. HUL belongs to the Personal Care Industry group which has a A rating in our Industry Group rankings. This puts the Industry at the 87 93% slab, which indicates that the Industry is very strong both in its price relative strength and EPS growth. This gives a clear indication that HUL is not the strongest stock in the Industry group.
HULs Mutual Fund holdings rank has a D grade; it represents the 20-40% slab. This again indicates that the stock has lost its favor among Fund managers. For the December 2011 data fully available we have 33,82,965 shares on the buy side and 26,99,814 shares on the sell side with 156 funds participating in the stocks transactions for the month of December 2011. Quarterly record of Mutual Fund transactions in the stock are about 1.00 Crore shares on the buy side and above 81.50 Lakh shares on the sell side for the Oct-Dec quarter. Though the buyers are more in the stock, it does not show much strength.
If one of the best stocks of our country is not a favorite among fund managers and is not having a good rank from the Industry group which enjoys high rankings, which are the stocks that are good in this Industry? The top stocks as per current data are Godrej Industries, Godrej Consumer products and Marico have their EPS ranks above 80 and are comparatively very strong than HUL.
On the technical side HUL enjoys strength as the stock is in a bullish trend in the weekly chart. Long trades have already been established, while the stock is holding in the value zone now. There are chances for a move up along with the markets, but the next move up will attract more sellers than buyers in the stock.
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