GLAXO PHARMA ANOTHER PICTURE PERFECT TECHINCAL MOVES 30 %

WE CAME OUT ON A DETAILED ANALYSIS AND BUY CALL ON GLAXO PHARMA TO PUR PAID CLIENTS ON NOV AND UPDATED IN BLOG ABOUT A PHARAM STOCK ON NOV 18 TH TO BUY GLAXO PHARMA @ 2397   EXPECTING A SHARP RALLY TODAY ON THE BACK OF NEWS STOCK WAS ON FIRE CLOCKED UPPER CIRCUT HIT 2900  MOVE 600 RS ON NO TIME

THIS WAS OUR MAIL TO OUR CLIENTS ON NOV 18

Glaxo Pharma stock has done nothing in last 2-3 years but it seems that’s about to change. Here’s why





Glaxo Pharma stock created a stiff resistance around 2400 for years. It’s only in May 2013- the stock broke past 2400 and since then has been on consolidation drive. The stock seems to be establishing base around 50 week ma (2293) and 2400 which is very bullish and once stock takes off from here – we are looking at multi year bull market in the stock.
What is a MULTI YEAR BULL MARKET
When stocks breakout from a well established multi year resistance: they run a marathon post breakout for years. Here’s one example: Apollo Hospitals
Apollo Hospitals broke out above 300 in Dec 2009 and then over next 3.5 years: stock tripled despite overall bad market environment. That’s what happens when stock breaks out after many years. They can run on their own.
Glaxo Pharma: Investment worthy
I am not saying Glaxo Pharma will succeed in same way as Apollo Hospitals. It may or it may not but the promise is there for multi year bull market. Remember, we are in a market and there is no certainty of anything. Glaxo Pharma is investment worthy stock and not suitable for trading and short term gains. Having said that – one should look to exit if stock slips below 2190 on closing basis.

THIS WAS THE NEWS WHICH HELPED TO STOCK  MOVE IN A BIG WAY
London-listed GlaxoSmithKline plc announced a voluntary open offer to increase its stake in its publicly-listed pharmaceuticals subsidiary in India, GlaxoSmithKline Pharmaceuticals Limited , from 50.7 percent to up to 75 percent at a price of Rs 3,100 per share.

GSK added that it intends to keep the company listed, which means it will not hike its stake any further after the open offer. Securities regulations in India require a minimum public shareholding of 25 percent for a company to maintain a public listing.

The open offer, in which the parent firm intends to buy 2,06,09,774 shares, or 24.3%, of the company, represents a premium of about 26 percent of the stock's closing price on December 13. “For GSK, this transaction will increase exposure to a strategically important market and for our Indian pharmaceuticals subsidiary’s shareholders we believe it offers a good liquidity opportunity at an attractive premium," David Redfern, Chief Strategy Officer, GSK, said in a statement. “GSK has a proud heritage in India. Today’s announcement is a further demonstration of our long-term commitment to the country having increased our holding in our consumer business earlier this year and more recently committed to a significant manufacturing investment.” HSBC Securities is the manager for this open offer.

 The transaction will be funded through GSK’s existing cash resources, will be earnings neutral for the first year and accretive thereafter and will not impact expectations for the group’s long-term share buyback programme, the parent company said.
 

S&P500: THE REAL PICTURE

When we follow market closely on day-2-day basis, we miss the big picture. Here’s one fact: S&P500 has not seen even a 10% correction since last 2 years. That’s how strong the market has been. But amidst all the strength: What has market actually done?

Here’s S&P500 Weekly Chart: Is market going to Moon  

In 2012, S&P500 built a base around 50 week ma: tested thrice and then took off. In 2013: it did not even correct to 50 week ma even once. It’s a perfect chart that shows market took off in a major major bullish way.

Here’s the S&P500 Daily Chart

In 2013, the market exhibited huge strength and S&P500 saw huge buying interest on even minor corrections to 100 dma. So, that means decline to 100 dma turned out to be good buying opportunity. The message: market is going Higher
BUT WHAT IS THE BIG PICTURE
S&P500 moving up on easy money of QE. Trend persists much longer than one can imagine. S&P500 is in solid uptrend. Is that the Big picture? We all can also debate how this will all end but we again are missing an important point: What has market achieved by moving like this in last two years

The Big Picture is the Chart below:

S&P500 is Trading at New HIGH and it has broken out above double top resistance of 1530-1560. Post Breakout, S&P500 did pullback to 1560 before taking off and rallying to 1800. Now, the Law of Breakout says that S&P500 may pullback either to 1530-1560 completely or a moving average like 100 week ma. Since, S&P500 has moved a lot in last two years, it’s quite likely that S&P500 may stall, build a fresh base at 1530-1560 before launching another upmove. Now, I am sure the decline to 1530-1560 may create anxiety and nervousness and End of Bull market call: but remember market may just be following a simple script of Breakout. That’s one big picture, traders should not keep an eye off.
Market will do what it has to do, we can only guess. The Big picture level to remember: S&P500 has broken out above CY2000 and CY2007 High of 1530-1560 and pullback to those levels cannot be ruled out.

Is 1240 THE FINAL FRONTIER FOR ICICI Bank Stock?

What is Dead end?  A point beyond which no movement or progress can be made; an impasse. Well – Look at ICICI Bank chart over last 7 years.

Here’s the ICICI Bank Monthly Chart

As you can see in the chart above: ICICI Bank has made many attempts to cross over 1240 in last 6-7 years but the stock has failed on every such attempt. It has turned out to be dead end for the stock.
What does this mean?
In market, stuff works as long as it works. Traders/Investors will short/book profit at 1240. Obviously, this all can change if traders decide to build a new road above 1240 – READ BREAKOUT. If ICICI Bank breaks out above 1240 and sustain – it will mark the beginning of new BULL RUN which can take stock much much higher in weeks and months to come.
WAIT FOR NEW ROAD TO EMERGE I.E. WAIT FOR BREAKOUT ABOVE 1240 and till that happens 1240 is dead end for ICICI BANK investors.