Dow Jones Industrial

 

As I have mentioned the Dow Jones Industrial is trading in the strong up trend and there is on need to worry. All the early signs of weakness has gone away. After taking support at 20 day simple moving average, it has started to move up to the psychological 12,000 level.

Dow Jones Industrial

Dow Jones Industrial is trading in strong up trend. It is trading above all the simple moving averages say 20, 50, 100, 200 day simple moving averages. Though some minor signs of weakness are visible on the chart as it has closed below the openings for two days, +DI has changed the direction below and the MACD is flat but until it does not break through the 20 day simple moving average, there is no need to worry.

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.