Published April 11, 2019
The market showed a small loss on Wednesday and Nifty 50 (NIFTY) ended the day at 11584 points, which is a decline of 0.75 per cent. For the past few trading sessions, the broader index has been playing around its previous highest close of 11739 points and trying to breach that mark. However, the short term momentum indicator RSI-14 just got shy and started to diverge at the point when Nifty 50 was in its full power attempting to close above 11700. It suggests that market momentum was little short of giving that extra push that could have taken the index to a new high.
May be it is waiting for the election results to give us all an unexpected surprise. That we have to wait to see. But there are three stocks that we have identified today which have given a breakout from bottom price formations and could turn out to be good potential investments.
Siemens Limited (SIEMENS.NS) Close: 1165.65
Siemens has broken out of the falling trend channel in the medium term chart. It has given a price breakout from the inverted head and shoulders formation both in the medium and long term charts and is now above its resistance of 1130 rupees. Further rise to 1336 or more is signalled.
Momentum is strong in the stock as indicated by the RSI curve. Over the past few month,s buyers have been pushing the price higher while sellers have been passive in selling the stock at lower levels. This has resulted in positive volume balance.
The stock has support at the 1130 and 1050 levels. While resistance is around the 1320-1340 and 1430 area. The stock is overall assessed as technically positive in the short to medium term.
Recommendation one to six months: Positive
Indiabulls Real Estate Limited has given a price-volume breakout by breaking through the ceiling of a falling trend channel in the medium and long term charts. After a period of condensation, the stock has given buy signal from a rectangle formation by a break up through a long standing resistance. Further rise to 121 or more is signalled. The stock has support at rupee 93.00 and resistance at rupees 142 and 200.
Positive volume balance indicates that buyers are aggressive while sellers are passive, and strengthens the stock. RSI is above 70 after a good price increase the past weeks. The stock has strong positive momentum and further increase is indicated.
Given the sharp rise in price which may or may not be followed by a period of retracement or consolidation, one must be cautious and also of high volatility in the stock . Hence identifying your entry and maintaining tight stoploss are always recommended.
Recommendation one to six months: Positive
Tata Motors limited has a similar story as Indiabulls Real Estate Limited. The stock retraced back after giving a breakout from a double bottom formation and early this month broke above the resistance of 185 rupees on high volume. Currently there is no established trend in the stock, but the price-volume breakout suggests further rise in price in the short term.
Positive volume balance and rising momentum strengthen the breakout and support the price rise. There is now support around 185 rupees and first resistance could be around 275 rupees, as suggested by the long term chart. The stock is overall assessed as technically positive in short to medium term.
Recommendation one to six months: Positive
The analyses are based on closing price as per April 10, 2019. Maintaining proper stop loss is always recommended.
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Die Anlageempfehlungen werden von Investtech.com AS ("Investtech") ausgearbeitet. Investtech übernimmt keine Haftung für die Vollständigkeit oder Richtigkeit der jeweiligen Analyse. Ein etwaiges Engagement aufgrund der aus den Analysen resultierenden Empfehlungen/Signale erfolgt zur Gänze für Rechnung und Risiko des Anlegers. Investtech haftet nicht für Verluste, die sich direkt oder indirekt infolge der Nutzung von Investtechs Analysen ergeben. Angaben zu etwaigen Interessenkonflikten gehen stets aus der Anlageempfehlung hervor. Weitere Informationen zu Investtechs Analysen finden Sie unter disclaimer.