Global stocks: Heavyweights leading index to new highs

Published November 27, 2019

It's not only the American markets that are creating history by making new highs, the Indian markets are not shying away from following suit. Nifty 50, India's leading stock market index, made an intraday high of 12131.60 points last week.  It had established a high above 12000 points in early June this year. Since then it tested its share of support around 10600 odd levels before it took a flight up.

Supporting the index rally, there are leading stocks that are major components of the Nifty 50 index participating in the feast. Nifty is composed of 50 large cap stocks and today we are writing about three big stocks that are either at or around their 52 week high and still looking strong.

To support conviction in the trade, Investtech has done research into the Indian stock market about the performance of NSE listed liquid stocks and their performance inside trend channels. You can read more about the research here.

Reliance Industries Li (RELIANCE.NS) Close: 1560.25

India's leading business house Reliance Industries Limited is in a rising trend channel in all time frames; short, medium and long term charts. Rising trends show that investors over time have bought the stock at higher prices and indicate good development for the company.

Last week the petrochemicals giant gave a fresh buy signal by breaking above the ceiling of the rectangle formation at 1481 rupees. Target from the price formation comes to around 1927 rupees. There is no resistance in the price chart since the stock is trading at its all-time-high. In case of any price correction, there is support around 1480 and 1320 rupees respectively.

Positive volume balance indicates that buyers are aggressive while sellers are passive, and strengthens the stock. The short term momentum indicator RSI is above 70 after a good price increase the past weeks. The stock has strong positive momentum and further increase is indicated.

Investtech's outlook (one to six months): Positive

Dr. Reddy's Laboratori (DRREDDY.NS) Close: 2965.85

Investors have paid higher prices over time to buy Dr. Reddy's Laboratories and the stock is in a rising trend channel in the short, medium and long term. Rising trends indicate that the company experiences positive development and that buy interest among investors is increasing.

The pharmaceuticals giant has recently given a buy signal by closing above the resistance of 2940 rupees in the long term charts. It has also closed above the ceiling of the rising trend channel in the short term chart. The stock also gave a breakout from a double bottom formation in the long term which gives the stock a price target of 3213 rupees.

The stock closed at its 52 week high and hence there is no resistance shown in the price chart. On the other side, there is support around 2820 and further at 2630 rupees. The current movement is strong and rising. Also the short term volume balance indicator is positive, which supports the underlying trend. Further rise in stock price is expected.

Investtech's outlook (one to six months): Positive

Housing Development Fi (HDFC.NS) Close: 2304.65

Housing Development Finance Corporation Limited is in a rising trend channel in the medium long term. This signals increasing optimism among investors and indicates continued rise. In September, the stock established a low at 1969 and has only risen since then. There is resistance around its previous high of 2345, however, if the stock manages to break and closes above that level, it may initiate fresh buying in the stock. Support is around 2220 rupees.

Talking about the momentum, it is strong and positive. The volume balance indicator suggests that more and more investors are coming in when the stock price goes up and fewer people are selling when the price is correcting downwards. This is a sign of strength and strengthens the underlying trend. The stock is overall assessed as technically positive in the medium term.

Investtech's outlook (one to six months): Positive

The analyses are based on closing price as per November 26, 2019. 

These instruments are traded in currency based on the Exchange or country they are listed on.

Kirjoittaja

Kiran R. Shroff
Analyst
Investtech

"Investtech analysoi markkinoiden psykologiaa ja antaa konkreettisia kaupankäyntisuosituksia päivittäin."

Espen Grønstad
Partner & Senior Advisor - Investtech
 


Investtech ei takaa analyysien tarkkuutta tai kattavuutta. Kaikkien analyysien tuottamien neuvojen ja signaalien käyttäminen on täysin käyttäjän vastuulla. Investtech ei vastaa mistään tappioista, jotka saattavat syntyä Investtechin analyysien käytön seurauksena. Mahdollisten eturistiriitojen yksityiskohdat mainitaan aina sijoitusneuvon yhteydessä. Lisätietoja Investtechin analyyseistä löytyy täältä disclaimer.


Investtech ei takaa analyysien tarkkuutta tai kattavuutta. Kaikkien analyysien tuottamien neuvojen ja signaalien käyttäminen on täysin käyttäjän vastuulla. Investtech ei vastaa mistään tappioista, jotka saattavat syntyä Investtechin analyysien käytön seurauksena. Mahdollisten eturistiriitojen yksityiskohdat mainitaan aina sijoitusneuvon yhteydessä. Lisätietoja Investtechin analyyseistä löytyy täältä disclaimer.

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