Grasim Industries Ltd – On the verge of breakout

Grasim Industries Ltd on a daily chart stock price is making higher high and higher low pattern with increase in volumes, indicate positive outlook for the stock price. Technically on daily chart stock price at Rs. 843 has touch the downward sloping trend line any trade or closed above the same stock price can rally towards previous high swing. Momentum Oscillator MACD has also given positive crossover, which add more bullishness for the stock price.

If one were to go by the volume data, a higher upswing is seen on the stock price. Trader or investor can accumulate above Rs. 848 for the target of Rs. 1036 levels, with Rs. 800 stop loss on closing basis.

Bharti Infratel Ltd – Double Bottom Pattern

Bharti Infratel Ltd on a daily chart stock price is making higher high and higher low pattern with increase in volumes, indicate positive outlook for the stock price. Technically on daily chart stock price at Rs. 339.90 has given the breakout of descending triangle pattern, also we witnessed a double bottom pattern, indicate stock price can rally towards previous high swing, which look most likely. Momentum Oscillator MACD started moving north, which add more bullishness for the stock price.

If one were to go by the volume data, a higher upswing is seen on the stock price. Trader or investor can accumulate at Rs. 339 for the target of Rs. 395 levels, with Rs. 324 stop loss on closing basis.

Tube Investment - Technical Brekout

There is one company which produces different component that fit in bicycle as well as in cars. The company we are talking about is Tube Investment. Which is into specialized in engineering, bicycles, metal forming and tube products. The company is likely to show better price performance in near term supported by good fundamental and technical breakout.

On chart, stock prices are volatile. The stock hit 52-weeks’ high of Rs. 684.70 in November 2016, then price revered near to low of Rs. 521.70, in the same month, down by 23.80 percent from its 52-week’s high. Currently, stock price is trading at Rs. 571.80 up by 9.60 percent from its recent low. We feel that there is more steam left and the rally is likely to continue.

On a daily chart, stock price started making higher top and higher low pattern, also we witnessed stock price was trading below 20 DMA from last 36 trading session, but yesterday stock price has surpassed the 20 DMA and closed above the same, indicate stock price has found the support level.

Proceeding on daily chart stock price at Rs. 571.80 has given the breakout at Rs. 567 of symmetrical triangle pattern which has stared from November 2016, in the triangle yesterday stock price has touched the lower channel and price has given the breakout of the upper channel of the pattern, now stock price will rally towards Rs. 640 level.

Tracking Bollinger Band (BB) we find stock price at Rs. 571.80 has closed above the mid band of BB, now stock price will touch the ‘Upper Bollinger Band’ and the bands are widening, thus indicating positive energy. Momentum Oscillator, MACD (Moving Average Convergence & Divergence) has given a positive crossover on a daily chart, favouring the bullish view, which could witness the Tube Investment marching higher.

The trend intensity indicator demonstrates that the stock is gaining strength as months pass by. The psychological sentiment towards the stock remains positive. The stock is also looking positive on the monthly chart, which foretells well for the long term uptrend of the stock. We believe the stock has the potential to move higher in the coming weeks and therefore recommend a buy at CMP and adding more on dips.

Looking towards the chart pattern and study i.e. Bollinger Band, RSI and MACD, we believe stock price may extend its rally towards Rs. 640/680 levels, whereas Rs. 520 will act as a strong support level on a closing basis.

Nifty Technical Outlook for 28-12-2016.

Dead Cat Bounce, closed above 8000.

Yesterday Nifty started with flat to positive note, but in the second half trading session we saw a dead cat bounce which take Nifty to closed higher up by 125 points ended at 8033 level. It was a temporary recovery in Index after a substantial fall. Technically index is trading below 20 DMA and 50 DMA, indicate index still unable to find the support level, but index has closed above the neck line of the head and shoulder pattern, which would be a relief session for investor. For bulls to resume Nifty must closed above 8220 level, on the flip side 7900 will act as strong support level. This week will we can see more volatile into the market due to ahead of F&O expiry, it would be tuff fight between bull and bear.

For today, any trade below 8020 level Nifty can fall towards 7900, If Nifty closed below 7900, the one can sell for the target of 7600. 

ITC Ltd – Double Bottom Pattern

ITC Ltd on a daily chart stock price is making higher high and higher low pattern with increase in volumes, indicate positive outlook for the stock price. Technically on daily chart stock price at Rs. 234.50 has given the breakout of descending triangle pattern, also we witnessed a double bottom pattern, indicate stock price can rally towards previous high swing, which look most likely. Momentum Oscillator MACD has given the positive crossover, which add more bullishness for the stock price.

If one were to go by the volume data, a higher upswing is seen on the stock price. Trader or investor can accumulate at Rs. 234 for the target of Rs. 258 levels, with Rs. 222 stop loss on closing basis.

Nifty for 27-12-2016. Closed below the Neck Line.

Nifty started the week on a weaker note ended lower down by 77 points closed at 7908 level, also it has break down the June month low, indicate index has lost the support level. Technically on daily chart index is making lower low pattern, which further add bearishness into the market. Likewise, we witnessed Nifty has closed below the neck line of a long head and shoulder pattern, if today once again Nifty closed below the same then most likely we can see another 700 points falls. For bulls to resume Nifty must closed above 8220 level, on the flip side 7673 will act as new support level.

For today, any trade below 7893 level Nifty can fall towards 7722. If Nifty closed below 7900, the one can sell for the target of 7600. 

Emami Ltd – Downward Sloping Trend Line

Emami Ltd on a daily chart stock price is making higher high and higher low pattern with increase in volumes, indicate positive outlook for the stock price. Technically on daily chart stock price at Rs. 989 is on the verge of breakout of downward sloping trend line at Rs, 990 level, any trade or closed above the same stock price can rally towards previous high swing, which look most likely.

If one were to go by the volume data, a higher upswing is seen on the stock price. Trader or investor can accumulate above at Rs. 990 for the target of Rs. 1100 levels, with Rs. 930 stop loss on closing basis.