Some Good Steals...

[dinkerj]

Hi Amit,
Whats wrong with KEC International?
Falling like anything right from yesterday!

 

[AMITBE]

Hi Amit,

I am a new member here. Just joined in yesterday. interesting to see hiw many people actually participate and a place to get value reading. I had a few queries. I had invested in Riddhi Siddhi at 171 levels and it went upto 210 and is again down to 185 levels. The company has given prefrential shares to a french comapany which is a euro 2billion company and they will be giving it strategic support. Riddhi Siddhi is into glucose and i found the financials decent and i see appreciation in the near future. Would like your view on the same as well as IPCL and Ankur drugs. I think ankur drugs will give us 20 to 30% return on our investment at current levels on a annual basis.

Rgds
Rahul

Hi Rahul...a warm welcome to the forum.
Riddhi is looking great still, and after sharp climbs stocks do fall back to consolidate before getting on with it. Hang in with s/l at 169.
IPCL is a strong counter of course and good investment. There is no buy signal at this time though.
Have no idea on Ankur's fundamentals, and no buy signal here either as yet.
Regards.

 

[AMITBE]

Hi Amit,
Whats wrong with KEC International?
Falling like anything right from yesterday!

Hi dinkerj...some news of restructuring the company? KEC Infrastructure, bonus issue, something there which I'm not too clear about.
Check with broker.
Regards.

 

[sharv]

Hi Amit,

thanks for the reply.

Yes as you mentioned I am closely following fundamentals.

As per recent quarter results Construction,Engg,Cement and 2nd row IT companies looks attractive .
I am also using Metastock(not much!!) and trying to follow TA + fundamental
Technofundalysis!!!
My span of investment is noarmally 1 to 2 months.
Would you please suggest a better TA indicator for that?

Thanks

sharv.

 

[AMITBE]

Hi Amit,

I am new to this forum ---- in a learning path. I want your comments in the
following. I am enclosing the daily line chart of STC india. Can the trend pattern
be called an ascending triangle? If it is, then should I wait for the breakout
or positions can be taken for short term, every time price come near the lower line?
Another thing --- it seems that for the last 8 months the scrip is in uptrend.
I don't know much about this company's business, only I have seen the results for the last few quarters ---- they look good. In the last quarter profit is higher than previous one on year basis, but sales figures dropped.

Regards,

Babun

Hi Babun, yes as you have noted, there is an ascending triangle on STC India.
It's good on the watch list for now and a close above 192-195 would set it up for a buy signal with target of 230 or more. Always keep an eye on the volume while tracking.
Well done, and all the best with TA learning path.

 

[babun]

Hi Amit,

Thank you for your reply and encouragement. Some questions ---
1) From your analysis, I understood that, as approx. 190 is a strong resistance,
so if it crosses that with high volume, one can hope for a good upmove.(Am I right?)

But how you have estimated target of 230?

2) And then, can the things go wrong,if one takes position, for a short term trade, when price comes near the support line?

Regards,

Babun

 

[AMITBE]

Hi Amit,

Thank you for your reply and encouragement. Some questions ---
1) From your analysis, I understood that, as approx. 190 is a strong resistance,
so if it crosses that with high volume, one can hope for a good upmove.(Am I right?)

But how you have estimated target of 230?

2) And then, can the things go wrong,if one takes position, for a short term trade, when price comes near the support line?

Regards,

Babun

Hi Babun, the charts are showing 90-93 off as a big resistance, so yes a close above here with strong volume would nomally be considered a breakout in progress. As the price has ventured well above these levels in intradayday moves in the past, one would want to take a cautious approach. If on the day the price closed above 194, with intraday high at, say 97, the next day one could observe the price volatility, the direction to which the pressure exists, meaning up or down, and volume. If the volume increases as the price wants to go up and decreases when down, one would take entry passing the previous days's high, meaning 97 with stop loss at 93. This is by the book to be cautious.
Targets can be set using trendlines, and also by considering the length of the consolidation preceding the breakout. Here the price has been in a range since early September last. A strong move can be expected when it comes. A good system to follow is trailing stops, where one keeps the exit level a certain distance below the current price, say about 5%. This way one rides the move as far as possible.
To the third question, it's always risky to come in for a short trade when the price drifts down to a support line. It's better handled with experience. Here again price action and volume are important to observe over a period of time to get a hang of the way a stock moves. Increasing volume when price drops is likely to breach the support. In theory what you are saying is possible, but with experience and observation, and with tight stops.
So much for now.

 

[hvram]

Hello Hari...it seems Maral is technically quite weak, especially on the weekly where it's coping with a h&s, a bearish pattern. A break below 33 would confirm the pattern and 30 levels may form base support.
To the up, a close above 45-47 would negate this.
Check the results for a few past quarters etc to see if these is any fundamental strength here before deciding.
It may stablise around 30.
All the best.

Thanks a lot AMITBE . I have decided to sell part of it now . I know the importance of stop loss and this is one more reinforcement of the importance of it

 

[AMITBE]

The market appears to be over heated to me and will go and do what it will.
However, Reliance Capital from various tecnicals is showing the symptoms of an explosive move coming up sometime soon.
At 456 now, once it moves above 467 it would be in bullish territory and above 473-475 may well fly possibly meeting resistance at 491 and 497. above 525 will climb faster. Target is 550-560 first.
At the cmp, strict s/l is 445 or deeper at 438.

Keep an eye on this...and also on the market.

This is from Jan 29.
RC did go as high as 480 close on Jan 31, and then fell sharp when the airport contracts fiasco happened.
Making a strong bid again today at 473 off after intraday 475.
473-475 is also weekly high thrice in the past.
S/l here is 463-461.

 

[hvram]

Hi
I tried analyzing the charts of Kajaria Ceramics . It seems to be going down on a steep curve in the last 20 days . But has fairly decent vloumes . I had entered at 48 and my stop loss was 39. Should I adhere to the stop loss and exit this counter now ?

Thanks
Regards
Hari