NIFTY

The nifty is moving in the range of 5200 to 5600. It is trading blow all the moving averages of 20,50,100 and 200 simple day moving averages. MACD is trading blow the zero line and MACD has crossed the signal line downward indicating sell signal. RSI(14) has changed it's direction downward. The Stochastic is also in the downward direction towards 50% level. All this shows that the Nifty will move towards 5200 psychological level, once this level is breached the next level will be 4830.

Shanghai Stock Exchange Composite Index

The Shanghai Stock Exchange Composite Index has fallen in down trend. It is trading blow all the simple moving averages say 50 day, 100 day and 200 day, The down trend is confirmed by making lower lows and lower highs. The RSI is making lower lows and is below the 50 level. MACD has crossed the signal line and trading blow the zero line.Slow Stochastics is also making lower highs and is in oversold region. The bulls have lost fight in the hands of bears. The next support level is at 2564.

Tokyo Nikkei Average Index

via StockCharts.com

The Nikkei is correcting. It has been in up trend since September 2010. Recently the RSI has touched the 70 level and started to fall down and currently at 45.27. MACD has crossed the signal line below. Slow stochastic has dropped from the over bought region and is below 50 level. All are the bearish signs. The correction can be deeper. If Nikkei breaks below the support provided by the 50 day simple moving average at 10204.81 then the next support will be at 9896.79 by 200 day simple moving average. The overall structure of Nikkei is positive and there is no reason of worry until it breaks through the support provided by 200 day simple moving average.

Review On Nasdaq Composite Index

Nasdaq Composite Weekly Chart

I n the weekly chart, the Nasdaq composite is trading in strong up trend. The RSI(14) is returning from the overbought region; the 70 level and now is at 68.20, the slow stochastics is also in the overbought region. The MACD histogram is also sloping down. Volumes are decreasing. All this show some correction is possible.

Nasdaq Composite Daily Chart

The above observation ,”A small correction is possible” is confirmed by the daily chart of Nasdaq Composite. The RSI(14) has dipped below the 70 level and is at 55.94 level and the MACD has crossed below signal line. The slow Stochastic has also dipped blow the 80 level, the overbought level. All this conclude that correction has started. The price has broken the support given by the 20 day simple moving average in intra day basis. The next support is at 2621.32 by 50 day simple moving average.

Gold Forming Triple Top Chart Pattern

The Gold is forming Triple top chart pattern from 9 Nov 2010 to 3 Jan 2011. This is bearish chart pattern. The Gold is trading at 1369.68 on closing basis, there is strong resistance at the level of 1395.04 posed by the 20 and 50 day simple moving averages. The support is at 1346.76 by the 100 day simple moving average.

The RSI(14) is forming descending high or in down trend, trading below 50 level, which is bearish sign. The same is true for MACD. MACD has crossed blow signal line and is trading below zero level.

All this confirms that there is still weakness left in gold.

Garware Polyester

The stock is trading at 173.10 on 5-1-2011 after the correction of almost 61%. The stock is showing potential to go up. The stock has taken the support at 200 day simple moving average. The short term resistances are posed by the 50 day and 100 day moving averages at the levels of 193.39 and 208.87.

The MACD has crossed above the signal line and RSI is rising above 50 level at 52.77. The +DI has crossed above the -DI. The ADX is rising and at 29.95. All this indicate that the stock has gained potential to rise.

The market cap of the stock is 401.71 Cr.The PE Ratio of the stock is 5.23 and that of industry is 12.92 . The EPS(TTM) of the stock is 33.30. The quarterly financial results ending September 2010 are satisfactory.

Recommendation:

Buy this stock for a target of 193 and with stop loss of 167 for short term.

Buy this stock for a target of 273 and with stop loss of 157 for medium term.

ONGC

The ongc is forming descending triangle formation. There is resistance posed by the three simple moving averages say 20, 50 and 100 day. This resistance is pretty difficult to break. The support are due to 200 day simple moving average at 1240.84 and the another resistance level at 1204.69. The MACD is trading below the zero line and has crossed below the signal line. RSI is also sloping down and trading at43.74. The -DI has crossed below +DI and ADX is at 30.42 . All these indicators shows that the stock may go down further. The up side is limited than the down side.

The market cap of the stock is 275700.67 cr.The PE Ratio of the stock is 17.38 and that of industry is 16.72. The EPS(TTM) of the stock is 74.24. The yearly financial results ending Mar 2010 and quarterly financial results ending September 2010 are satisfactory.

Recommendation: If stock goes below the level of 1204.69 with volumes then one can short this stock for a target of 1137 with a stop loss of 1180.

Bhushan steels

Click to enlarge the image.

The above chart is shown after adjusting the stock split.

After taking support at 20 day and 100 day simple moving average, the stock has started to rise . The only minor resistance is due to 50 day simple moving average. Once this resistance is crossed it will have next resistance at the level of 540 which will be its target in short term.The MACD has crossed above the signal line. The RSI is rising. +DI will soon cross -DI above.There are some bullish and some bearish sign but the overall picture is in favor of buy.

The market cap of the stock is 10293.01.The PE Ratio of the stock is 11.03 and that of industry is 11.78. The EPS(TTM) of the stock is 43.94. The yearly financial results ending Mar 2010 and quarterly financial results ending September 2010 are good only EPS is decreased.

Recommendation: One can buy this stock for a target of 540 and with a stop loss of 452. The closing price on 31-12-2010 was 473.90.

LIC Housing Finance

Click image to enlarge.

The above chart is shown after adjusting the stock split.

The stock has taken the support at a level of 165. The stock price is above the 20 day simple moving average. The MACD has crossed above the signal line. The RSI is rising. +DI will soon cross -DI above.There are some bullish and some bearish sign but the overall picture is in favor of buy.

The market cap of the stock is 9315.26 .The PE Ratio of the stock is 2.29 and that of industry is 31.65. The EPS(TTM) of the stock is 85.67. The yearly financial results ending Mar 2010 and quarterly financial results ending September 2010 are good.

Recommendation: One can buy this stock for a target 219 of and with a stop loss of 185. The closing price on 31-12-2010 was 195.40. Once the first target is met, the other targets are 228.19 and 244.58.

YESBANK

The YESBANK is having support at 20 day simple moving average and 200 day simple moving average at 304.10. The MACD has crossed above the signal line and trading at -5.69. The RSI is rising and trading at 47.11. The +DI has crossed above the -DI. All this indicate early buy signal. The combined resistance posed by 50 day and 100 day simple moving average at 330.81.

The market cap of the stock is 10795.97 .The PE Ratio of the stock is 18.03 and that of industry is 28.80. The EPS of the stock is 17.34.

Recommendation Closing price on 30-12-2010 is 312.70. One can trade in this stock for a target of 330.81 and a stop loss of 304.10 for short term.

BSE Mid Cap Index-MIDCAP

The BSE Mid Cap index, MIDCAP has broken through the resistance of 7669.64 and trading above 200 day simple moving average. It has started to rise after a correcton. The MACD has crossed above the signal line but still is below the zero line. The RSI is also rising and is at 48.13. The +DI has crossed -DI in above direction, all these are bullish signs. The only major combined resistance posed by 50 and 100 day simple moving average is at 8041.04. From level 7669.64 to 8041.04 i.e. 4.84%, there is no resistance, One can trade safely in this period in selective mid cap stocks. After this level is broken then the bulls will be in dominance.

BSE Small Cap Index-SMLCAP

After a correction, the small cap index has started to rise. The MACD has crossed the signal line above but still trading below zero line. The RSI has started to rise and now at a level of 48.73. The index is currently above 200 day moving average. The only major combind resistance posed by 50 day moving average and 100 day moving average is at 10,096.97. It is safe to trade in selective small cap stocks for a upside of about 6% in short term.   

BSE BANKX

The BSE sectoral index BANKX has set in the down trend and trading in the down channel. BANKX is trading blow it's 100 day moving average. The MACD is making lower lows and is way below zero line at -253.57. The RSI is also making lower lows and is below 50 level at 42.55. The only sign of bullishness is that it is trading above the 200 day simple moving average one it is below this then the down trend will be more confirmed.   

Hotel Leela Venture

Click the image to enlarge

The market cap of the stock is 1782.06. The PE Ratio of the stock is 41.77 and that of industry is 40.38. The EPS(TTM) of the stock is 1.10. The financial results ending year march 2010 has not been very satisfactory.

The stock has corrected and has taken a support at the levle of 40.15 after that it has started to rise. There are threee resistances in it's upwards move, the 200 day simple moving avg, 100 day simple moving avg and 50 day simple moving avg, making a resistance area of 48.59 to 50.84 which is very diffiult to cross. The MACD has crossed the signal line above which is bullish but still is below zero line which is bearish. The RSI is rising and above 50 level which is bullish sign. All this conclude to if stock price crosses the resistance area of 48.59 to 50.84 then the bulls will be dominating and it can see the levels of 58.19 which is about 16% profit in short term.