One Buy and One Sell Signal

Published November 27, 2018

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It was a positive day on Dalal Street on Monday and a good set up, a happy tone for the rest of the week. Nifty 50 long term price chart clearly suggests that price is clinging to its uptrend channel, which is keeping all our hopes alive. Turning on to advance-decline ratio for Nifty 50, it was little over 2, indicating that two stocks rose while one fell yesterday. Well enough.

Another heavyweight that made a fresh 52 week low was ONGC, while ABB, our positive candidate today, may look like an early opportunity to encash in.

ABB India Limited (ABB.NS) Close: 1348.70

ABB India Limited is in a rising trend channel both in the long and short term, while it is in a weak falling trend channel in the medium term. After establishing a bottom at 1135 rupees in July this year, the stock has recovered very well and is above a few resistance levels.

Currently the stock is trading above 1330 rupees while the next resistance is around 1460 or eight per cent higher. This poses itself to be a good opportunity. There is support around 1330-1310 levels. Momentum is rising and the volume balance indicator is also very positive. These indicators support the rising stock price. The stock is overall assessed as technically positive for the medium to longer term perspective.

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

Oil & Natural Gas Corp (ONGC.NS) Close: 146.60

The oil and gas giant ONGC 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 has closed near its 52 week low and has also broken its longer term support of 157 rupees. If tomorrow prices continue to trade lower that its last close, it may initiate a new sell signal.

Next support in ONGC is at 128 rupees while resistance is around 157-161 levels. The stock is overall assessed as technically slightly negative for the short to medium term.

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

The analyses are based on closing price as per November 26, 2018. Maintaining proper stop loss is always recommended.