Published March 27, 2019
Yesterday was a positive day for the Indian stock markets and the index Nifty 50 rose by 1.14 per cent to close at 11483 points. It has been a positive month for the markets where a gain of 5.7 per cent has been noted for the index.
Many stocks are making all time highs and some are giving fresh positive price breakouts either from a price formation or ditching the falling trend channel and making higher tops and higher bottoms. These breakouts can either turn out to be a boon which can result in handsome returns, or may be a short term play only to rake in investors. Hence like we always suggest, one must be cautious, be awake and always maintain a stop loss only to avoid any sharp drawdowns. After all, it's your own hard earned money.
Mahanagar Gas Limited (MGL.NS) Close: 999.75
Mahanagar Gas Limited has broken out of a rectangle formation in the medium term and a double bottom formation in the long term chart. Since March last year the price was swinging between support at 785 rupees and resistance at 970 level. The buyers finally decided to take a step forward and take the price above resistance. The stock is now inside a rising trend channel. Further rise in price is anticipated.
Momentum is positive and strong as the RSI-value is over 70, which suggests that the rate of rise in price relative to its price in the past is higher. Volume balance is also positive, indicating that buyers are aggressive while sellers are passive.
The stock has support at 966 rupees in the short term chart while resistance is around 1048 and 1280 levels.
Recommendation one to six months: Positive
Trent Limited is inside a rising trend channel in all time frames; short, medium and long term. This shows that investors over time have bought the stock at higher prices and indicates good development for the company. The stock has given positive signal from rectangle formation both in the medium and long term charts by a break up through the resistance at 362. Further rise to 420 or more is signalled. There is support around 360 and 351 area.
Last week the price tested the same level and has started to turn back on the positive side. This is a positive sign. The recent price action has been supported by positive volume balance and rising momentum. The stock is overall assessed as technically positive for the medium long term.
Volume in the stock varies from time to time, hence one must be careful with regards to the quantity.
Recommendation one to six months: Positive
Can Fin Homes Limited has broken out of the falling trend channel and resistance level of 293 in the medium term. The stock has risen sharply in the past two months and has given a buy signal from a rectangle formation recently. Further rise to 384 or more is signalled. Next resistance is at 434 rupees while support is around 293.
RSI is above 70 after a good price increase the past weeks. The stock has strong positive momentum and further increase is indicated. The volume balance indicator is also positive, as more buyers have bought the stock at rising prices and the number of sellers has decreased when the stock reacted downwards. The stock is overall assessed as technically slightly positive for the short to medium term.
Recommendation one to six months: Positive
The analyses are based on closing price as per March 26, 2019. Maintaining proper stop loss is always recommended.
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.