NSE Indices Performance for the week ending 7th March 2013
Category: Uncategorized
Stock of the Day – Yes Bank
While most new private sector bank stocks had a flat year in 2013, for Yes Bank, it turned out to be an awful year with the stock losing nearly 20% by the time the year ended. The first month of this year seemed to suggest that 2014 may turn out to be even worse for the stock as it lost 17% in January alone. But February saw some consolidation creep and in and despite we being just 7 days into March, the stock has made up for all the losses of January and as of now is slightly positive for the year.
On the daily charts, we can find multiple patterns [after all, patterns are in the eye of the beholder, ain’t it 🙂 ]. The fall in Jan, consolidation in Feb and the current upmove has meant that we saw a small Cup pattern (I have written about this Cup pattern appearing  on a couple of other stocks some time back). Today’s move has meant that the trend-line connecting the top of the cup is broken.
I have also marked in White what seems to be a Symmetrical Triangle pattern. The trend-line connecting the higher peaks was also broken today. And finally, today’s move has also seen it cross the 200 day EMA with substantially strong volumes. While markets being overheated may cool off a bit, this is a stock to watch with a bullish bias.
Stock of the Day – SRF
A one time speculators delight and valued based on its Carbon Credits, SRF chart shows an interesting picture. In 2006, well before many of the stocks had even started their bull run, this stock topped out. This high was broken in 2010 but the market reaction took a pretty strong toll on the stock price as it once again plummeted lower.
Thanks to the strong move we saw today (stock was frozen at the max 20% limit), the stock seems to once again showing great promise. Whether it will be able to test the 2011 high is though another question though I would say, probability seems to be in its favor than against it.
Stock of the Day – Cox & Kings
Cox and Kings peaked out in the third quarter of 2010 and since then, it has seen nothing but Red as the stock fell from 330 levels to lows around the 90 range in October last. Since then though the stock has seen a very good climb and now seems to be setting up for another move higher.Â
Presently the stock trades just below the high of 2013 and seems to break the level of 150 which has acted as a resistance level in the past. The next resistance will be seen at 180 levels and above that at 230. Seems an interesting play to watch
1000% returns under a year
Over the period of a good year, one sees quite a few stocks double / triple from the lows they started the move from. But the unique feature of many BSE listed stocks with little ink to show on their Balance Sheets is their ability to generate returns in excess of 1000% in a given financial year.
For example, check out this stock – BSE Code:Â 531769. The company’s December quarter results showed it making a profit of 0.85 Million Rupees giving it at the current price a PE ratio of just under 1100 (One thousand one hundred). And no, this is not the first time the stock has moved to such extreme levels either. As can be seen in the chart below, the stock touched its all time high of 800 in late 2011 before plummeting down to sub 50 levels from where it has risen once again.
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Of course, this is not the only stock to list on the exchanges and attract mind boggling valuations. Most persons associated with markets know that many of these do not belong to the pump and dump category either. They specialize in another area – Washing. Now, let me not expand on that, but I do believe that you will know how washing can turn dirty black clothes to sparkling white – and all this without having to pay the taxman a cent.
It amazes me no end that people are still stuck in the 80’s when belief was that black money was invested / saved in Swiss Accounts. Who nowadays in the right mind would want to do that when you have opportunities in plenty to clean it up right here at home and at the same time make some moolah too 🙂
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Oracle of Omaha on outperforming the Index
Nearly a month back, I wrote about how one way to Analyze how good a system is, is by comparing the returns to Buy & Hold returns (Measuring Performance). Its hence nice to see similar thoughts echoed by the Oracle of Omaha in his 2013 Annual Report Â
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While Buffett writes his thought based on he being a fund manager, if you are running money, you are your own fund manager and the benchmark to beat would be the Index returns regardless of the methods you use.Â
Stock of the Day – BASF
Each day brings a new sector into focus and today was the day for Chemicals (Tata Chemicals had a great day with gains of 7.9%). the stock I am covering though is BASF which has had an incredible run in the last few days. The overall pattern that has emerged on the weekly chart points out to a breakout from a Ascending Triangle (would have loved three tests on the upper trend line, but we need to work with what we have).
RSI on the daily charts is at 88 and is at 74 on the weekly and hence some amount of cooling off may happen.
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