restrict-user-access domain was triggered too early. This is usually an indicator for some code in the plugin or theme running too early. Translations should be loaded at the init action or later. Please see Debugging in WordPress for more information. (This message was added in version 6.7.0.) in /home1/portfol1/public_html/wp/wp-includes/functions.php on line 6114Its mid cap stocks all the way as many of them continue to test all time highs. Aarti Industries has today moved yet again to its all time high though the last time we tested similar levels, we saw some serious damage to the short term trend before it rebounded in style as it moved 18.2% in this week alone.
Volumes has been pretty substantial when compared to its average trading volume. They key hence will be a close above 110 which should give a nice breakout.
A trend-line break is supposed to showcase the end of a trend. But in case of Geometric, it seems to be a catalyst for a reversal as the stock has sharply moved higher after loitering below the trend-line but at a support zone for some time. While the stock is making a multi-year high, its all time high is a bit higher.
Delivery Volumes has been pretty high today and yesterday though on the negative side, the last time we saw such strong volumes was in October 2012 shortly before the stock topped out.
Sugar has been a sector which has been pretty sour to investors for a pretty long time. The trend is still down for most of the stocks in the sector. Renuka is one of the exceptions as it shows a break out of a falling wedge pattern (definitely not a text book case).
Immediate resistance levels are 22.50 and 24.50.
Hat-tip: @bhatswati
Amtek Auto is one of those stocks that hasn’t seen a bull rally in a really long time. Amtek peaked a bit before the 2008 market fall and while the stock has currently seen a very strong rally, its still 82% below its all time high.In fact, even after the 43% move we have seen in February, the stock trades at a price which was seen in 2004.
The trigger for the recent rally seems to be the release of quarterly earnings which came in pretty strong. Technically, as the chart below shows, we have broken a long term trend-line as also the high of 2013.
If the turnaround in the company is for real, technically we are at a stage where the risk seem small for the potential reward.
Bajaj Electricals made a high of 148 in the year 2008 before it plummeted down to sub-30 levels when markets crashed in 2008 / 09. The next top was made in 2011 at 347, a move of 134% above the 2008 high. But since 2011 it reacted a bit and then from 2012 onward it has more or less got stuck in a range.
The stock is once again at the cusp of a breakout of this range and seeing the kind of momentum this stock has shown in the past, it would not be surprising if it manages to regain its 2011 high in double quick time
Yesterday, I had written about the Cup pattern we were seeing in MindTree (Link). A similar pattern can be found in Finolex Pipe as well. While the stock has participated in both the 2003 and the 2009 / 2010 rallies, the returns were not too great since there has always been a concern on the quality of management. It now seems that the company has seen a re-rating as it has been a strong performer 2013 and seems set for continuation in the current year.
Mind Tree has been one of the stronger performers in the recent rally that was seen in IT stocks. The daily chart seems to show a classical pattern of a Cup. Now, this can evolve in two ways
1. We can see a reaction and if the reaction is not more than 50% of the size of the cup, the pattern will become a cup and handle formation
2. The stock can just brush across the high of the cup in which case, this will be a pure breakout of a Cup formation with target comign to around 2000.
Or it can just react from the current juncture and break the low of the cup which will be indicative (and not a clear case of ) double top formation.
Of the three, I currently favor the first option looking at the strength of the stock with the probability of this being a top being pretty low.
