Two Buy Signals and One Sell Signal

Published November 16, 2018

Nestle India Limited (NESTLEIND.NS) Close: 10464.00

Investors have paid higher prices over time to buy Nestle India Limited and the stock is in a rising trend channel in the medium long term. This signals increasing optimism among investors and indicates continued rise.

The stock has support at rupee 9350 and resistance at rupee 11600, so risk reward is almost equal.

The volume balance and momentum indicators are positive and strengthen the stock in the short term. The stock is overall assessed as technically positive for the medium long term.

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

Rural Electrification (RECLTD.NS) Close: 126.25

Rural Electrification Corporation Limited has broken the ceiling of the falling trend in the medium term. The stock has given a breakout from a double bottom formation and has broken above its resistance of 120 rupees at the same time. A buy signal has been generated and the formation gives a price target of 149 rupees in the coming weeks or months.

Positive volume balance suggests that buyers are coming in with every price rise, while sellers are now getting hesitant to sell at lower price. Positive and rising momentum as indicated by high RSI value suggests that buy interest among investors is rising and the stock may continue to rise.

The stock has resistance around 153 in the medium term. Support is between 120-100.

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

Sun TV Network Limited (SUNTV.NS) Close: 596.60

Sun TV Network Limited is in a falling trend channel both in the short and 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 a rectangle formation by breaking down through the support at 615 rupees. Further fall to 565 or lower is signaled.

Volume has previously been high at price lows and high at price bottoms, hence negative volume balance.

There is no clear support before 430 in the long term chart, but in case of a reaction on the upside there is resistance between 615 and 674 rupees.

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

The analyses are based on closing price as per November 15, 2018. Maintaining proper stop loss is always recommended.