Wkly Tech Analysis: Pullback likely to persist
31 May 2010, 0440 hrs IST, Deepak Mohoni
31 May 2010, 0440 hrs IST
31 May 2010, 0440 hrs IST, Supriya Verma Mishra
31 May 2010, 0440 hrs IST, Kiran Kabtta Somvanshi
31 May 2010, 0440 hrs IST
31 May 2010, 0439 hrs IST, BAKUL CHUGAN TONGIA
31 May 2010, 0439 hrs IST, Karan Sehgal
31 May 2010, 0439 hrs IST
31 May 2010, 0438 hrs IST, Rajesh Naidu
STOCKS: Sun Pharmaceuticals: Buy
Better-than-expected financial performance, promising outlook for its domestic and international formulations business and the possibility of resumption in manufacturing at Caraco's site by the end of this year make Sun Pharmaceuticals ...
STOCKS: SAIL: Hold
Investors can consider holding on to steel major SAIL, whose massive size in terms of production capacity, raw materials and cash, coupled with low levels of debt and a robust domestic market for its products, makes for a compelling case to ...
TECHNICAL ANALYSIS: Go short in RNRL
RNRL (Rs 52): The stock has been in a downtrend for the last nine months, though it witnessed a pull back rally in the last ten days. As long as it stays below Rs 76, the outlook remains negative. The stock now finds crucial support at Rs ...
TECHNICAL ANALYSIS: Pivotals: Reliance Industries (Rs 1,033.8)
It was an extremely volatile period for Reliance Industries in May as the stock spiked to Rs 1,093.6 and then crashed towards our lower medium-term target of Rs 966. The short-term trend in the stock is down since the May 13 peak of Rs 1,093. ...
TECHNICAL ANALYSIS: Sizzling Stocks: Sesa Goa (Rs 373.8)
Sesa Goa turned red hot on Friday as market participants decided that the recent sell-off was excessive and Chinese demand was unlikely to wane anytime soon. The stock spiked to the high of Rs 375 on Friday to record gain of over 20 per cent ...
NEW DELHI: On May 26, an Airbus ACJ 320 with the call sign ‘VT-IAH’ touched down at New Delhi’s Indira Gandhi International Airport from Mumbai. Another flight, a Falcon 2000 that answered to the call sign ‘VT-AAT’, landed two minutes later. The pilots of both the jets informed their billionaire owners that they have landed safely. Outside, the day was just beginning, but the mercury in Delhi had already climbed to 38 degrees.
Mukesh Ambani, the owner-passenger from the first plane, walked out of the airport in his characteristic brisk style, his mind preoccupied with the packed schedule for the day. On top of his priority list was a meeting of the Prime Minister’s Council on Trade and Industry. At the airport, Mukesh ran into Angarai Sethuraman, head of corporate affairs at the Anil Dhirubhai Ambani Group (ADAG) and a close aide to Anil Ambani. He was there to receive the owner-passenger of the second jet: Anil Ambani. Suddenly, Sethuraman was face-to-face with his old boss. Mukesh, chairman of India’s largest private sector company, Reliance Industries (RIL), calmly walked up to Sethuraman, shook hands and asked him warmly, “How are you, Sethu?” That small gesture travelled quickly through the political and business circles of the Capital, where the news on Monday that the Ambani brothers have decided to end their six-year-long acrimonious battle and to “collaborate” had been received with surprise bordering on scepticism. Even though the brothers lived and worked in Mumbai, many of their battles were fought in the power corridor of Luyten’s Delhi. The Capital’s decision makers and influencers knew the bitter saga closely. It had divided them, put them in awkward spots, and in many cases, rewarded them handsomely. The fault lines of the battle divided the loyalties of New Delhi, whose importance was understood early and well by the Reliance patriarch, the late Dhirubhai Hirachand Ambani. So the city had to see for itself if there was actually a thaw in hostilities. By warmly greeting a man who had been a key figure in the rival camp’s New Delhi affairs, Mukesh Ambani sent a clear signal—he meant to stick to the agreement in spirit. Exactly a week earlier, on May 19, Kokilaben Ambani, Dhirubhai’s widow and mother of the warring brothers, had returned after a visit to the famous Shiva temple at Kedarnath in the Himalayan foothills. “This has gone too far now. The two of you have to resolve the differences,” Kokilaben is believed to have told younger son Anil, according to insiders who have heard accounts of the conversation. Anil had accompanied her on the pilgrimage along with his sister Deepti Salgaonkar. But Kokilaben had been there before and almost done that. Five years ago, she had stepped in and drew up a settlement between her two sons, who lived in reasonable harmony while her husband was alive, and had a bitter fallout soon after his death. The agreement, dividing the companies Dhirubhai Ambani had assiduously built between his two sons, was signed on June 18, 2005. Six months before that Mukesh Ambani had, during a TV interview, admitted to “ownership issues” that were in the “private domain”. That was the first public admission of disharmony that had been brewing behind the scenes since the death of Dhirubhai. |
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in a Chinese language edition published in Beijing. He developed the Guppy Multiple Moving Average Indicator which is included in Metastock, OmniTrader and other charting programs. He delivers accredited courses for the Singapore Stock Exchange and Society of Remisiers, Singapore. He is an appointed foundation member of the Australian Government Shareholders and Investors Advisory Council. He is a regular technical analyst commentator and guest host on CNBC Asia Squawk Box.
As a technical trader he relies mainly on chart and live market information to make trading decisions. He is the publisher of a weekly Internet newsletter Tutorials in Applied Technical Analysis, which explains technical analysis techniques and shows how they are applied to current markets. There are Australian, and Asia & China and India editions of the newsletter, with each concentrating on local market solutions and trading education.
He is a regular contributor to the Sydney Futures Exchange magazine, Your Trading Edge, the US trading magazines Technical Analysis of Stocks and Commodities, Active Trader, Working Money, Bridge Trader, Australia's Shares and Personal Investment magazines, Singapore's Smart Investor magazine and The Edge business weekly and Personal Money in Malaysia. He has a regular column in China's Weekly On Stocks magazine and in Shanghai Securities News. (Chinese language only) He also contributes to Poland's Profesjonalny Inwestor and provided sector analysis on the Singapore, Hong Kong, Malaysia and Philippines markets for i-invest handbooks.
He edited and contributed new material to the Australian editions of the US classics in the International Investors Bookshelf series, The Basics of Speculating and Day Trader's Advantage and Options: Trading Strategies That Work and Trading Rules and Mastering Technical Analysis. He prepared the introduction to the Australian editions of Breaking the Black Box (M Pring), A Technician's Guide to Day Trading (M Pring) and New Thinking in Technical Analysis (R Bensignor).
He provides web content to Sanford on line brokerage, Reuters, On Line Trading systems, the Society of Remisiers, Singapore, Asiastockwatch, Telstra Big Pond Money and Quicken, Singapore. He provides charting chat room support and is co-host for the stockmeetingplace traders forum.
He trades from Darwin in the Northern Territory, of Australia, some 3,000kms from the nearest Exchange. As a result he makes full use of electronic advantages to actively trade the market and to keep in contact with other Australian and overseas traders.
He gives conference briefings for brokerage private clients. He is a featured speaker at the Australian Traders Expo, for the Sydney Futures Exchange Conference days around Australia and New Zealand, and at the Australian Technical Analysts Association annual national conferences. He was one of the speakers in the first Australian Equis Metastock seminar series. He also spoke at the On Line Trading Summit in San Diego which was web cast to traders throughout the world, and at the Technical Analysis Trading Forum in Orlando. He has spoken at trading conferences in Italy and France. He has spoken frequently at all the major Australian Stock Exchanges, and for brokerage firms.
He was one of two foreigners (Jim Rogers and Daryl Guppy) to participate in the 2005 Chinese market outlook conference in Beijing which was broadcast throughout China. He is a keynote speaker at the 2007 China Capital Markets Investment Forum. His analysis has been presented at the 2005 Palm Oil Outlook conference sponsored by Bursa Malaysia and the BYSD Annual conference in Turkey. He is a regular speaker at the annual ASEAN Rubber Conference. He is a frequent speaker at financial trading seminars in Shanghai, Beijing and Shenzhen.
He presents Certified Professional Training modules for charting and advanced technical analysis for the Singapore Stock Exchange and the Society of Remisiers, Singapore and the Hong Kong Securities Institute. He has worked with the Singapore and Australian Stock Exchanges to promote their cross trading link. He worked with Reuters Hong Kong to deliver trading and training workshops. (Read Hong Kong workshop review) He was the lecturer for the Casuarina Senior College charting course.
He also runs public trading workshops, and equity and futures brokerage sponsored seminars for clients such as National On Line trading, CMC Markets, Beijing SEEC in Australia, Kuala Lumpur, Singapore, Shanghai, Dalian and Paris. He provides in-house training support for fund managers, brokerage dealers and remisiers.
He presented several on-line workshop conferences for Pristine.com and Compuserve Investors Forum. He has appears regularly on CNBC Asia, Squawk Box as guest host technical analyst, Asian Wall Street Journal, Trading Day, Channel News Asia and ABC radio and television.
He was retained as a consultant by several Australian and Singaporean brokerages and financial portals to advise on the development of Internet based brokerage, trading and information services. He is a member of the Australian Technical Analysts Association, the Technical Analysts Society of Singapore and the International Federation of Technical Analysts.
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The markets are likely to open with a downward bias on continued international weakness. The US markets tumbled Monday with the Dow giving up all but 5 points of gains registered Friday during a fury of short covering on the options expiry.
After trading in a narrow range for much of the day, the Dow Jones Industrial Average tumbled 127 points, the S&P 500 lost 14 points to 1074 and the NASDAQ shed 15 points at 2214.
The late swoon indicated those investors’ fears about Europe's credit crisis and tighter rules on Wall Street are still running strong. Financials led the decline on a day when the street refused to take cognizance of the 7.6% rise in existing home sales.
The euro was under pressure during the session as the market weighed news that the Bank of Spain bailed out a regional savings bank. The 1.1% rise in Dollar Index, however, did not prevent the Crude and Gold futures to move higher 17 cents and $ 17.90 higher respectively.
The bullish fervour seen in the morning trades in our markets could not hold for the day as bears came back in the afternoon to snatch the initiative away from the nascent bulls. The Nifty managed to cling on to just 13 points of gains, from the 98 points seen at one point.
Barring Reliance Infra, which saw some additional position build up, the rest of the clan saw positions being pruned as investors took advantage of the god sent rally to prune positions.
Our stated view was also the same.
Expect the Nifty to take support around the 4850 level. If the 4832 level breaks, it will not augur well and we could see a cascade of selling by risk managers in that eventuality.
Autos, banks, metals, realty still look weak. As the settlement draws near, the options are becoming cheap and times match the stop loss of a trader. Switching to options during the last two days of the settlement is protective and also gives you more bangs for the buck. Ask your RM to understand how you can hedge your portfolio or use options to trade.