Wockhard collapses 20% in a day and 70% from Peak. Further dips a buying zone at 650-550

In the last couple of years the biggest gainer was Wockhardt moving from 300-500 zones to 2000-2200.
Mind you in 2008 it was one of the biggest pharma losers falling from 450 to 70 rs.

In the start of 2013 we saw a slew of reports on the stock at 1200-2200 levels Some targets may have been achieved but broking firms generally do not shift from a Buy to Sell directly and keep revising targets so that they keep getting access to the management.

One of the biggest initiation at top came by Bank of America Merill Lynch at 1930 levels. http://www.moneycontrol.com/news/business/bofa-merrill-initiates-wockhardtbuy_843094.html

Emkay also did initiate a buy at 1500 and targets got achieved but i doubt they reverted to sell.

Since then we have seen a spate of bad news on the stock and has collapsed to 670-700 levels. Let us look at it technically.

-> The major breakout happened in the stock on sustaining 380-430 resistance band and 600 next. This was the first indication of a long term trend change giving major upsides.

-> The next big signal to sell came only at 1600-1700 levels which was very clear.

-> On a longer term basis the stock may find a lot of support at 600-500 levels. As a matter of fact it can be an excellent buying opportunity into the stock at those levels.

-> The forthy move is over and one may see good support around 600. Investors may actually accumulate the stock on further dips if one can digest a dip to 500 in worst case. Upside we could be looking at 800-900 or higher again.

-> The current down fall is a mix of bad news and over participation which happened at 1800-2200 levels.



Conclusion – This is purely a technical take on the stock and we may keep a deep 20% stoploss and accumulate between 650-550 with a longer term view and reduce holdings on rise to 750 to lower costs.

Reliance Capital – Range Breakout target 430/460

Reliance Capital

There are around 3-5 attempts at the 390-395 mark in the last 6 months. The last couple of times the stock saw a violent fall to 310-320 where it almost looks like a double bottom.

Sustaining 395 opens up a move to 430/460 in the short term and maybe higher also all the way to 500. Looks like a nice Channel / Range breakout or even a cup and handle.

Given the stock is highly volatile as always the case with ADAG group stocks keep a stop of 380.

Banking Sector/Stocks Should be in Focus in August Series

Banking Sector/Stocks Should be in Focus in August Series

Bank Nifty

Reco going Long near 10800-900 levels , 11300 near today

Indusind :Reco going  Long @ 440-45 levels

470+ today

SBI : Reco Going Long Near 1800

1860+ today

Yes Bank : Reco Going Long Near 420-25 levels

Today hits 437-38

Kotak Bank :  Reco Going Long near 680 levels

Today hits 725

ICICI BANK Reco over here @ 960 levels is nearing 990+ today 

Disclosure : Were heavy longs in Some Selected Banks from Last week , slowly slowly Booking out of them in good gains now

Abv charts are the charts mailed to paid clients last week !!

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Technical View : BHEL

Technical View : BHEL 

BHEL MIGHT TRADE BETWEEN 160- 210 OVER A LONG PERIOD OF TIME BEFORE ANY SERIOUS BREAK OUT OR BREAK DOWN HAPPENS

LONG TERM VIEW

Short Term

 

Reliance: The Next Price Target

Technically, How high Reliance can go in near term. Well, Here’s what Charts have to say.

Let us look at the Reliance Chart

As you can see in the chart above: Reliance stock was trading in a range between 900 and 1140 during 2009-2011 time frame. But the stock broke down below 900 in June 2011. Post breakdown- for two years Reliance under performed and remained below 900. 
But with Gas pricing reforms – Reliance seems to be turning around. Reliance has broken out above 900 and if stock sustains above 900 – then stock has potential to rally to 1140 – the next resistance level. It’s likely that Reliance may start trading in the same zone i.e. 900 on downside and 1140 on the upside. The real momentum will emerge above 1140 which seems unlikely before elections.
In near term: Reliance appears buy on declines near 900 and one can look for target of 1140. 

TCS: Rewarding Trades in Leadership Stock

TCS has been in Bull market for number of years now and 2013 has been extremely rewarding for Bulls.

Investment Rule: When stocks are in Bull Market – Pullback to 200 dma is an excellent Buying Opportunity. 
Here’s an excellent example: TCS in 2013

As you can see in the chart above: TCS has pulled back to 200 dma twice in 2013 and both occasions have turned out to be excellent buying opportunity. Just see the gains one would have made by buying a Leadership stock near 200 dma

The examples reinforces the belief that it’s quite rewarding to buy a well established leadership stock near 200 dma. Once a stock develops a Leadership – it’s rewarding to follow the stock religiously.

FINOLEX CABLES: MULTI BAGGER STOCK KEEP U R EYES

FINOLEX CABLES:   MY MESSAGE TO PAID CLIENTS ON JUNE 6 TH
FinolexCables:  CMP 52 surprised to see 4PE on last year earning! Rich balance sheet, management getting better, impressive growth - g8 brand. Buy FinCable@52 - many potential +ve triggers, better margins (low copper price). expects to cross Rs.100 in one year STOCK ALREADY MOVED 20 % NOW 65  IF IT  MANAGES TO CLOSE ABOVE 65  THE REAL GAME CHANGER STARTS AS PER TECHNICALS CLEAR BREAK OUT ON CHARTS