Author Archives: admin

#12 Stock Update: Portfolio Pick:- Jain Irrigation

CODE: JISLJALEQS     Sector: – Plastics

CMP: – 157.25     Strategy: – Buy on Dips   SL: – 125   Targets: – 176/183/200/215/237/270

About the Company: –

 The Corporation has multi product industrial profile and manufacturers of Drip and Sprinkler Irrigation Systems and Components; PVC, Polyethylene (HDPE, MDPE) & Polypropylene Piping Systems; Plastic Sheets (PVC & PC sheets); Dehydrated Onions and Vegetables; Processed Fruits; Tissue Culture, Hybrid & Grafted Plants; Greenhouses, Poly and Shade Houses; Bio-fertilizers; Solar Water Heating Systems and Solar Photovoltaic Appliances (Solar lighting systems) and Bio-Energy sources. We render consultancy for complete or partial project planning and implementation e.g. Watershed or Wasteland and / or Crop Selection and Rotation.

My Views:-

Jain Irrigation is a Multinational company with presence in over 120 countries and around 22 plants across the globe. It has been performing well over the years with the CAGR of 41% which is simply outstanding. Its book value as per last financial year ending balance sheet is 176. It is in the business of making products which are helpful for agricultural and agricultural is the sector which won’t die ever in the world. In India, farmers are going towards professional farming and the demand for such products is going to increase which is a good sign for the company. The company has its FCCBs and listing even on Singapore and Luxembourg which means company is world renown.  Technical speaking it is available at discount because market value is 157 while book value is 176. If we check out daily chart, then a probable inverted Head and shoulder is about to form which has a breakout at 176 levels which ought to be book value too. Weekly chart has shown bullish engulfing pattern with the strong support of all the indicators. I recommend making some space for this stock for your long term portfolio.


#11 Stock Update: Weekly Picks 27th June to 1st July

“Morning star” pattern is seen on dailychart while Dragon fly Doji is seen on weekly chart. On daily Chart RSI and stochastic are suggesting a strong buy with 56 and 35 levels respectively.
Yes with Tgt of  628
A dragon fly Doji is supported pn weekly chart with a long legged spin bodied bull candle. 14 Day RSI is strong on daily chart at 46.
Yes with tgt of 430

A close over 200 DEMA on daily chart with strong buy indication by Stochastic for short term. Weekly Indicators are strong with MACD and RSI.
Yes but buy on dips with SL of 1637 and tgt 2002.
JSW Steel
BUY on dips. “Morning star” formation has been seen on daily chart with a stochastic crossover at the 30 levels. Dragon fly doji is witnessed on weekly chart.
Yes with a SL of 800 and tgt of 996 to 1050

Daily chart has witnessed close over 200 DEMA and all other major moving averages. RSI and Stochastic are strong at 50 level marks.
“Morning Star” has been seen on daily chart which is a reversal sign of the down trend. RSI is at 52 showing strong buy with MACD and Stochastic supporting it. On weekly chart long legged bull candle is also representing bullish sentiments of investors.
Bajaj- Auto
A long bullish candle is seen on daily chart with MACD crossing the centre line. RSI is at 59 suggesting a buy for the stock. Weekly chart is also showing some dicey picture.
Risky investors can with a SL of 1258 and tgt 1650

#33 Nifty Update

NIFTY was unbeaten with 151 points to close around 5471. As i had been saying about the crucial level of 5350, today the close has been above that level which is a good sign for the market. Major reason for the spike was relief of the Greece Debt by EU leaders. Commodity prices have seen sharp fall which is a good sign for the Q3 margins of the company. Today EGoM is gonna meet up for the Hike in diesel prices
which gave all Oil Companies a hike of around 3% on dalal street. On the other side, telecom department is working on reducing circles of operation from 22 to 4 or even 1 which means consumer wont have to pay any roaming charges and all INDIA will be local. Bill is expected to be passed by end of this year. Now, NIFTY seems to catch momentum for the up move. Our strategy for long term will be Buying NIFTY on Dips with a SL of 5356.

NIFTY levels for 27th June:-

R-5504  S-5424 
R-5570  S-5381
R-5609  S-5356
R-5667  S-5300

#32 Nifty Update

Bulls were on the winning edge in the crucial match against bears today. Rahul Dravid , the wall of India saved team against WI yesterday while “wall of stock market” i.e., Reliance Industries saved
dalal street with 2.92% not out. Bulls won the match by 41.70 points to achieve the target of 5320. A Bullish engulfing pattern is witnessed i.e., a long bull candle covered previous bear candle
completely. Is this the end of the bear run??? Nope…We cannot confirm unless the closing is over 5350. A probable upside head and shoulder has been formed on daily chart. TATA Motors, TCS and Hero
Honda gave some support to the move of NIFTY. GTL is one of the most talked stock on dalal street due to its 80% decline in last 3 session but still I suggest “AVOID NEW POSITIONS” in the stock. There are
almost 50 companies which includes Hero Honda, Shree Renuka sugars, Alok txt, Tata Global , tata Power and many more whose more than 25% shares are pledged which is weak signal for new positions for the same. I will try to provide with list of those 50 stocks in a day or 2. So, Strategy for NIFTY is wait and watch until the close is 
above 5350 or below 5200.
NIFTY levels for 24th June:-
R-5356  S-5276
R-5400  S-5250
R-5442  S-5200
R-5482 S-5176

#31 Nifty Update

Today Bulls and Bears were playing a test match where the end result was a draw. NIFTY closed almost flat at 5278 giving no win to either side. All the front line stocks are already so discounted in the current scenario. If we compare the price of each blue chip companies
with its historical prices on previous 5300 level mark they are way discounted. Market today confirmed “rounding formation”, which I mentioned in last 4-5 reports, as it closed for 3rd consecutive day below 5350 which was the neckline for the formation. Midcap was
Sledged by traders today. Titan industries was down by almost Rs.300. Bank sector was a bit less banged. In Telecom sector Idea and Bharti Airtel were slashed by almost 2-4% each and
expect some short term downwards correction in this sector. In NIFTY50, LT, BAJAJ-AUTO, AXIS BANK ,ONGC ,CIPLA and M&M were the few who hold up the market. Daily Indicators Stochastic and RSI have started showing “Possible Signs” of uptrend but all depends on Greece
debt crisis and Mauritius tax Treaty. Many analysts says that RBI is at the peak of its rates and you may not see any further hike in rates which is a relief for banking stocks and the market as a whole. But still stay away from the market unless the closing is above 5300-5350
level for 2-3 consecutive days
NIFTY levels for 23rd June:-
R-5313  S-5262  
R-5350  S-5196  
R-5400  S-5147  
R-5442  S-5100   

#30 Nifty Update

Today NIFTY opened in positive note with some short covering. It was up by almost 60 points but later on it was almost flat. Now we are hearing the case of pledging shares by companies. Yesterday it was GTL while today ORCHIDCHEM pledged its 80% shares and 87% of total is held by McDowell (as per my knowledge, figures may vary). NIFTY is now trading well below all the support levels. Now the major support level is 4786 which is the low of last one year made on 25 may 2010. I will suggest don’t take any fresh position in any stocks because yet the trend is undecided. Strategy for the NIFTY is sell on rise with the SL-5395.
NIFTY levels for 22cd June
R-5338   S-5257
R-5356  S-5196
R-5394  S-5147
R-5449  S-4984

#10 Stock Update: Long Term Buy: BHEL

Industry: – Engineering and Capital Goods
Stock is around 52 week low. BHEL has witnessed a Dragon fly Doji on Daily chart before some days. As we could see in the chart, stock has been moving in the tune of Fibonacci Retrenchment for last one year. It has taken support 4 times around 1894 in last one year which is 100% retrenchment from the top. Technical Speaking stock has been trading in oversold territory and now it is time for long term investors to get into the stock.

Investment tips:

Strategy: – Buy on Dips
Targets: – 2200/2500/2700
Time Horizon: – 1 year
Stop loss: – 1820
14 Day RSI: – Strong at 44 giving a buy signal
MACD: – (-21) after crossover at (-32) giving a strong BUY

#9 Stock Update: Weekly picks

TATA Steel has witness an important “double bottom formation” at 554 levels. On Friday it witnessed a gap up opening .It has given close above 5 and 10 day Moving averages. We could see that TATASteel has been taking support and resistance at Fibonacci levels throughout the last year. Double bottom and its breakout is also the Fibonacci levels. After the breakout at 594 levels target comes out to be 629 which is also a Fibonacci resistance. So my weekly pick this week is TATASTEEL.
CMP: 573
14 day RSI- 48 and turning up strong
Stochastic: Crossover at 20.

#29 Nifty Update

NIFTY opened in red as it was expected due to the global concerns. Today NIFTY made a low at 5356 which was the most crucial for rounding formation as I mentioned in last few reports. NIFTY is trading in too range bound and intraday traders are not able to get much gain from either side. MARUTI finally got rescue from the strike and production to start soon. Nothing was much in news today which could drag NIFTY up. RELIANC and Infosys were the most banged today from NIFTY 50 stocks while banks like SBIN were fairly good and many intraday traders got handsome returns by buying at low and selling at todays high. Now next two crucial supports are at 5335 (double bottom support) and 5300 (Fibonacci retrenchment support of 61.8% from the 52 week high of last one year). Now its risky to go short at this level because rounding formation is complete and NIFTY might bounce back from crucial supports in intraday. Only go short below 5300. Now the focus will be only on one formation “double bottom “ at 5335.
NIFTY levels for 20th June:-
R-5400  S-5335  
R-5442  S-5300  
R-5482  S-5232  
R-5525  S-5196   

#28 Nifty Update

NIFTY opened down with a gap as all the foreign markets were down by almost 1%. Jobless data in US and Greece president resigning were 2 major news which made foreign markets cry. Highly awaited RBI policy came as per the marketers expectations i.e., hike of 25 bps. This hike was already discounted in the market. After the policy NIFTY was confused as a student answering the Math multiple choice question which way to choose. Reliance on one hand was dragging NIFTY down while SBIN and BANK Index were making the move strong. Ultimately NIFTY broke down our support of 5400 and closed below that. Now our head and shoulder support is breached and confirmation of the same can be only attained if NIFTY tomorrow closes below 5442. But if NIFTY opens negative then we may see levels of 5360 which is a rounding completion or 5320 which may create a possible double bottom. So strategy for NIFTY is wait and watch for the two crucial supports of 5360 and 5320.
NIFTY levels for 17th June:-
R-5449     S-5380               
R-5476     S-5367
R-5505     S-5337
R-5547     S-5300