One buy and one sell in stocks while index suggests caution

Published February 08, 2019

Nifty 50 (NIFTY) moved more or less horizontally on Thursday and closed at 11069 points (+0.06 per cent). The index has now closed up for the sixth day in a row.

The index has broken upside through the rectangle formation in the medium term. Support is established at 10850 points. However, one must also be cautious as resistance awaits at 11140 points.

The Hausse indices are indicators of optimism. They show the ratio of investors who are positive in the market and values above 50 indicate that a majority of investors are positive.

In the current market, the short term index is at 20 which is lower by 2 points from last week as well as the long term hausse which is down by 3 points from 30 to 27 in the past week.

MphasiS Limited (MPHASIS.NS) Close: 1022.95

Mphasis Limited has broken up through the ceiling of a falling  trend channel in the medium term. The price has risen strongly since bottoming out in January and has now broken through the resistance at 1000. The next level of resistance is around 1270. Support is at 1000 and 900 rupees which suggests good risk reward ratio.

The volume balance is positive and the momentum indicator RSI is rising. Together this strengthens the stock in the short term. The stock is overall assessed as technically positive for the short to medium term.

TV18 Broadcast Limited (TV18BRDCST.NS) Close: 32.45

TV18 Broadcast Limited is in a falling trend channel in the medium term. This shows that investors over time have sold at lower prices to get out of the stock, and indicates negative development for the company.

The stock gave a negative signal from rectangle formation by the break down through the support at 33.05. Further fall to 28.53 or lower is signaled. The stock tests resistance at rupee 33.00 and eventually at 35 on the longer term chart. However, there is little support visible on the charts which could let the stock fall further.