Charts for the Day

[nitingosavi]

sir, when your time permits, drreddy ... a chart plz.

Tata steel, the chart you posted a aprox month ago with detailed explanation was very much helpful to a learner like me ..and "was terrifically accurate from point to point !!"

 

[anil_s_trivedi]

sir, when your time permits, drreddy ... a chart plz.

Tata steel, the chart you posted a aprox month ago with detailed explanation was very much helpful to a learner like me ..and "was terrifically accurate from point to point !!"

Dear nitinji,

Dr Reddy is in secular uptrend. The key levels to watch are shown on chart with explanations. Remember for trend to mature, either it will end the parabolic move with steepfall or you should be on alert when stock is rising on after third or fourth base on your timeframe. For ex; four bases on weekly got complete indicated any rise from hereon will or can be a trigger for trend reversal. Stock cant rise till eternity.

We as a trend follower only needs to latch on the trend with key reversal in hand.

For extreme short term on daily, i will be on alert if stock closes below 4130 levels, it can test 3900 zone.

 

[anil_s_trivedi]

Voltas

 

[timepass]

Anilbhai, Maruti has been in a secular bull run for some months now, but are there divergences building up ?

 

[anil_s_trivedi]

Anilbhai, Maruti has been in a secular bull run for some months now, but are there divergences building up ?

Dear TPji,

Maruti is in secular uptrend and recent price trend is slightly sloping up, which is raising fears of trend coming to mature sooner. But we cant tell until it shows some evidence. And till now there is no evidence on purely price action front.

Looking at AUTO sector relative with SENSEX it seems it is right now resisting at upper trendline and weakness there will break below green trendline will surely act as sign of intermediate settling in auto sector. Maruti infact defied the Auto sector trend, as maruti registered higher top and BSE AUTO failed to do so now. So a strong character poses by Maruti as of now. Now it will be watchable how long it defies sector weakness coming in.

Maruti wrt NIFTY relative action shows a likely pattern target nearby coming in. So that chart will be watchable for surely.

Momentum wise divergence is creeping in on weekly and daily charts but it needs further price action to gauge that divergence settling in.

 

[anil_s_trivedi]

With todays fall many got confused whether to enter now or wait. Its all your study on markets which should guide you and not when market is ON.

As i always said, if you had a system or working rules and it tells you too go in at xxxx levels then you 'must', if it tells you refrain from entering, then you should follow it to the core. Point is dont change your rules in wake of panicking around.

Dont try to catch the bottom, nobody knows...

 

[nitingosavi]

sir can you post Tatasteel chart once again? with ur analysis
It has also reached long term falling channel support. if bottom is nearby how we can identify it? just how to check probability.

 

[anil_s_trivedi]

Dear nitinji,

Its difficult to arrive at bottom. If you see weekly chart the volumes on past three bar coming down. It means selling slowly down. If you notice past two weeks, excluding current one, prices are just closed at same level. It means there is some accumulation going on, with 'weak' holders getting wiped out.

On the contrary, if you see daily charts, volume is rising since past four days with significant bar spread, implying lots of selling going on. And just focus on todays bar under development it is again high volume on, and its greater than yesterdays as of now, so it requires just a good close above yesterdays 206 levels may be 2-3% and with already increasing volume, it will imply arrest of immediate downtrend.

 

[nitingosavi]

Anil sir,
that day Tata steel closed well above 206. and the rally continued... 227-228 ! thanks.

Sir, when possible can you post Infosys charts.? is there any hint of weakness on weekly chart..?

 

[anil_s_trivedi]

Anil sir,
that day Tata steel closed well above 206. and the rally continued... 227-228 ! thanks.

Sir, when possible can you post Infosys charts.? is there any hint of weakness on weekly chart..?

Infosys is in secular uptrend and stock on monthly just now resisted this month at highs and since then falling in on above average volumes, solace is its holding 50/200 SMA zone of 1050. So a break here with volumes not good for bulls.

Monthly chart have two down bars with high volumes and till now no monthly bar able to break it on upside. Current week bar will reveal whether potential for downside remains if current week bar closes near the lows, and we have already have volumes greater then past few weeks.