Published January 30, 2019
The broader index Nifty 50 closed almost flat on Tuesday at 10652 points. However, the index gave a negative signal from a double top formation by the break down through support at 10672. Further fall to 10388 or lower is signaled. The index has support at points 10460 and resistance at points 11000.
We have found an interesting opportunity in one of our Top 50 stocks.
Praj Industries Limited is in a rising trend channel in the medium term. Rising trends indicate that the company experiences positive development and that buy interest among investors is increasing.
The stock price, both in the medium and long term tried to break out of the higher trend channel line but reverted back and took support at the bottom of the rising trend channel. There is now a near term resistance at 154 and support at 118. Major support is around 102 and 100 levels.
Volume has previously been high at price tops and low at price bottoms. Volume balance is also positive, which strengthens the trend. The stock is overall assessed as technically positive for the medium term.
The stock has been swinging over 22 percent on a yearly basis, hence the volatility risk is high.
Recommendation one to six months: Positive
The analyses are based on closing price as per January 29, 2019. Maintaining proper stop loss is always recommended.
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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.