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Stock of Day | Portfolio Yoga - Part 3

Tag: Stock of Day

Stock of the Day – DLF

Stocks belonging the Realty sector has been down and nearly out since the fall we saw in 2008. Of course, this has changed little on the ground where property prices continue to appreciate making it even more of a conundrum of what is ailing real estate stocks. While debt overhang remains for many, many companies which have not been troubled by Debt too have seen either flat returns (over multiple years) or worse a decline compared to its all time high.

But over the last week, some realty stocks seem to have finally found some foot hold and today saw continuation of the same (though we saw a strong decline towards the end indicating that the turnaround will not be as easy as one assumes). 

DLF had a sharp rise mid-day and while we saw a reaction towards the end of the day, the stock has still closed above a crucial resistance level of 173. As can be seen on the charts, this is a level that has been tested multiple times in the past and this augurs well for the stock. Today’s rise has not come with much volumes though which remains pretty low compared to what taking out of a major level should generally showcase. But despite all this, one needs to keep a strong eye on this stock since the next major resistance level if 75 points away from the current level.

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Stock of the Day – Crompton Greaves / Siemens

Is Crompton finally out  of the woods. A company that had at one point of time shown great promise had plummeted lower on account of a continuous stream of bad results as well as questions on corporate governance. But over the last few months, the stock has been steadily rising and is now breaking multiple resistances as it surges ahead.

As can be seen on the charts, the next major resistance is nearly at 165 but once that is crossed, one can expect a stronger rise as the next major resistance is quite some distance away (nearly 40% above at 235).

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Another stock belonging to the same sector and which too is showing promise is Siemens. On the weekly, we can see that the stock has broken above a slanted Inverse head and shoulder neckline and should augur well for the stock in the short to medium term. Target for Inverse H&S formation comes to 940 which is a major resistance level owing to it also being the top of 2011.

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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.

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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.

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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. 

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

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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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Stock of the Day – CESC

A few days earlier, I wrote about Tata Sponge Iron, a outlier in the Metal sector in terms of recent stock performance. Today’s stock, CESC is another outlier as it is hitting multi year highs (the all time high is pretty far for now) on the same day that NTPC (the leading power producer in India) is hitting multi year lows. Tata Power and Reliance Infra aren’t far behind in the race to the bottom.

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