RECOMMENDATION - Buy at cmp of 74
Kindly note that it is a trading recommendation for the short term and strict adherence to stops is imperative.
Target -86, Stop-70.50, Time-T+14 DAYS
Rationale -
Performance Backdrop : The stock has been performing in line with the other auto stocks. A tapering off in momentum was witnessed in the last one month despite the robust run up in the broader market and the sector as a whole. This patch of underperformance did not create any lower tops and bottoms, thereby not contributing to any weakness.
Trendline - The recent drift in the stock prices have brought it very close to the trendline shown in the diagram above. This line is likely to act as a support for the stock.
Indicator - The Stochastic indicator is portraying an oversold reading - Oversold readings in established uptrends are good entry points judging from any yardstick.
The factors mentioned above in conjunction with other detailed technical studies prompt a buying opportunity in the stock for the short term for a target of 86. A stop of 70.50 (one percent filter below the trendline) may be observed to manage the downside risks.
Trendline - The recent drift in the stock prices have brought it very close to the trendline shown in the diagram above. This line is likely to act as a support for the stock.
Indicator - The Stochastic indicator is portraying an oversold reading - Oversold readings in established uptrends are good entry points judging from any yardstick.
The factors mentioned above in conjunction with other detailed technical studies prompt a buying opportunity in the stock for the short term for a target of 86. A stop of 70.50 (one percent filter below the trendline) may be observed to manage the downside risks.
Disclaimer : The recommendations mentioned herein are for educational purpose only. One should not take buy/sell decisions based on the above analysis which is prone to errors. The author does not undertake any liability whatsoever arising out of profits/losses accruing from using the above analysis.
Thats grt !! I bot at 74 and am still holding - just inform me when to exit (if possible) - very happy with the recommendations so far
ReplyDeleteDo you just use technicals while recommending stocks ?
ReplyDeleteHow do i inform you - You have not even left your identity or your mail here !! Moreover, if you need timely calls with proper entry/exit, subscribe to our SMS EXPRESS service
ReplyDeleteI use technicals primarily
ReplyDeleteHi Misschef,
ReplyDeleteStumbled across your blog through a MMb boarder and realised that your prediction about GIC Housing was precise. You are doing a nice job here. I am primarily a mid/long term investor and generally follow fundamentals of a co. However, now I am willing to take some more risk and want to start short term trading. as per your call I have purchased Ashok Leyland @76.97 (a bit higher than your buy call since I read the reco a bit late) and Apollo tyres @83.00 I would like to submit a suggestion for your blog. Kindly keep adding updates for your calls - i.e. any amendments to your previous tgt/ closing a call/ booking profit or loss. this comes very handy to the new investors and increased reliability of your service to a great extent. You might be already knowing this but I would suggest you to visit a blog called tracktradeinvest.worldpress.com. i hope you don't mind me suggesting these things. Thank you.
Hi Webmaster,
ReplyDeleteExcellent results by Ashok Leyland posted today. The stock held its ground inspite of fairly big fall in the markets. Hope to see some movement tomorrow. It sems Coal India IPO is sucking all the juice from markets. Hoping for achieving the target by end of first week of Nov atleast.
Just my opinion; correct me if I am wrong.