Close to selling point, time to be cautious

Published February 19, 2019

The market showed a small loss Monday, and Nifty 50 (NIFTY) ended the day at 10641 points, which is a decline of 0.78 per cent. The index has now closed down for the seventh day in a row. 419 shares showed a gain and 1051 showed a loss. 65 shares were unchanged and closed at the same price as the previous day. There was no trading in 190 shares. The value of the total volume of shares and primary capital certificates traded Monday was approximately 264.0 billion.

Among the most liquid stocks on NSE there are a few that are hovering around their supports. A small crack and close below support area could lead to fresh selling in them. However, these big names also take cues from the broader market, and if the markets decide to turn up, these stocks may establish a support and return to their up journey. Remember that the Nifty index closed near its support around 10600 points.

Housing Development Fi (HDFC.NS) Close: 1874.85

Housing Development Finance Corporation Limited does not show any clear trend in the medium term. The stock has developed a rectangle and a head and shoulders formation and has closed marginally below the neckline. If the stock continues to go down it would be a sell signal and may go down further to 1780 rupees or lower. There is support around 1780 and 1655 levels. On the upside there is resistance between 1930 and 2007 rupees.

Recommendation one to six months: Watch

Aurobindo Pharma Limit (AUROPHARMA.NS) Close: 716.75

Aurobindo Pharma Limited has broken through the floor of a rising trend channel in the medium term. This indicates a slower rising rate at first, or the start of a more horizontal development. The stock is moving within a rectangle formation between support at 705 and resistance at 797. A decisive break through one of these levels indicates the new direction for the stock. The stock is testing support at rupee 710, which may give a positive reaction, but if the price breaks and closes below the support it will be a sell signal.

Recommendation one to six months: Watch

 

The analyses are based on closing price as per February 18, 2019. Maintaining proper stop loss is always recommended.

Written by

Kiran R. Shroff

Analyst - Investtech

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Archive:

15 February: These two sugar stocks look promising 

14 February: Three short to medium term opportunities 

08 February: One buy and one sell in stocks while index suggests caution 

06 February: One buy and one sell, short to medium term opportunities 

01 February: Upside breakout from price formations 

30 January: Buying opportunity: Reversing from trend channel support 

9 January: One positive and one to stay away from 

2 January:  A good investment opportunity 

2018

21 December:  Good buying opportunities

14 December:  Positive on these three stocks

11 December:  One buy and one sell signal

07 December:  Sell Signals in Three Big Stocks

04 December:  Highest scorer of our Top 50 list

30 November: Positive stocks with 5-11 per cent upside potential

28 November: Buy signal on high volume

27 November: One Buy and One Sell Signal

23 November: Fear dominates these stocks

21 November: Sell signal, time to stay away

20 November: Early opportunity from short term buy signal?

16 November: Two Buy Signals and One Sell Signal

15 November: Buy signal in this one

14 November: Solid buy signal

13 November: Big auto stocks comparison

09 November: What to wait for?

06 November: Banking stocks look positive

02 November: Positive on this one

01 November: TECHM, NIFTY50 and Hausse

31 October: What are investors thinking?

30 October: Bullish on these three stocks

26 October: Three potential candidates to ride on

24 October: Three big Metal stocks, Seasonal variation

22 October: Among top performers on our Top 50 list

18 October: Three stocks investors should stay away from

17 October: Flowing against the tide

16 October: Positive on these 2 stocks

11 October: Over 45 per cent rise

10 October: 3 negative stocks

9 October: The Indian banking space

5 October: Nifty closes at a crucial level

2 October: Price formations in the long-term charts

28 September: Positive on Biocon Limited

26 September: Bearish outlook

25 September: 3 solid buys

20 September: State Bank of India story!

18 September: Weekly technical analysis

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Investtech guarantees neither the entirety nor accuracy of the analyses. Any consequent exposure related to the advice / signals which emerge in the analyses is completely and entirely at the investors own expense and risk. Investtech is not responsible for any loss, either directly or indirectly, which arises as a result of the use of Investtechs analyses. Details of any arising conflicts of interest will always appear in the investment recommendations. Further information about Investtechs analyses can be found here disclaimer. The content provided by Investtech.com is NOT SEC or FSA regulated and is therefore not intended for US or UK consumers.


Investtech guarantees neither the entirety nor accuracy of the analyses. Any consequent exposure related to the advice / signals which emerge in the analyses is completely and entirely at the investors own expense and risk. Investtech is not responsible for any loss, either directly or indirectly, which arises as a result of the use of Investtechs analyses. Details of any arising conflicts of interest will always appear in the investment recommendations. Further information about Investtechs analyses can be found here disclaimer. The content provided by Investtech.com is NOT SEC or FSA regulated and is therefore not intended for US or UK consumers.

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