Mar
03No If, No But - We are in a good market
Filed Under (Market Observations) by Deepak Singh on 03-03-2010
Nifty has moved up 4.7% in last 3 days. It is trading above 20 day ma, 50 day ma and 200 day ma. And so - technically, the market looks to be in fine shape. The internals are also looking good and technically strong stocks are breaking out and making new highs. Finding a fault with current market just does not make sense. We have to accept that we are in a bullish healthy market, where one should just focus on technically strong stocks.
Reliance: Road to Nowhere.
Today, Reliance closed up 4.23% and there was lot of excitement…but the fact is Reliance has done nothing since May 2009. The good news - that despite today’s upmove - Reliance can travel some more distance till it hits the major resistance area of 1140.
Source: ChartAlert [www.chartalert.com]
The chart also indicates that market can stay range bound for a fairly long period of time.
Ranbaxy: Chart reflects confusion
Ranbaxy stock has clocked huge volumes in last 3 days. The newsflow has not been very encouraging yet stock has held on and not sold off as widely anticipated.
Source: ChartAlert
The 50 dma may apply resistance to the stock but it seems stock may find buyers at lower levels especially around 422.
Indiabulls Financials = Rising from ashes - up 11% today
IndiaBulls Financials has been a dead stock for market participants. Have a look at the chart below and you will understand why I am making such a statement. But post budget - there has been return of excitement in the counter and it may just beginning of strong up move to 140-150.
Source: Chartalert [www.chartalert.com]
The big question: will there be clean follow through move?
Few more Observations
- Real Estate stocks are moving up - but difficult to say whether it is short covering or genuine bargain buying? The service tax confusion may result in choppiness.
- Today, JP Associates shot up 6% to close right at 200 dma of 146. Is bullish conviction returning back in this stock?
- If market has to move up from current levels - stocks like SBI and HDFC have to stand up and be counted.
- Financials are showing strength. Oriental Bank of Commerce made new 52 week high today. Bank of Baroda and PNB is already trading near 52 week high
- One more space that exhibited bullishness today: Power stocks be it Tata power, NTPC, or Torrent Power.
Let me know how you found this edition of stock observations. Please suggest how I can make this notes more useful to all of you.
Disclaimer - The state of the market notes is Deepak’s perspective on the market. The column is purely for educational purpose. Nothing contained herein is a solicitation to trade or a recommendation of a specific trade. By reading this publication you agree to make no trade relying in whole or in part on the comments of the writers
I used check this site regularly earlier, and out of action for the last 20 months.
That time there used to be recommendations but now I don’t see it . Could you pls provide Deepaks recommendations for stocks. See finally it is individuals decision .