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Stock of Day | Portfolio Yoga - Part 5

Tag: Stock of Day

Stock of the Day – Voltas

On the weekly charts, Voltas is still pretty much in bearish territory with the stock yet to cross above the highs it made in 2012. All time highs made in 2007 / 08 and 2011 remain pretty far away for even consideration.

But its on the daily charts, that we see some substantial action indicative of a change in trend. The stock is placed just below its short term resistance and a move above 130 should give a clear breakout on the medium term charts as well. Above 130, 155 is the next level of resistance for the stock.

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Stock of Day – Muthoot Finance

Muthoot Finance and Manapuram Finance are the two major NBFC companies that deal with loans backed with Gold. But RBI restrictions combined with falling gold price has had a impact on the stock price in recent months. The first sign of change of trend came about in January when RBI eased the norms for extendingloans against gold jewellery as collateral.

Today, once again, both gold companies have broken out of short term zones with good volumes. On the longer term charts though, the chart of Muthoot appears much better compared to Manapuram which is still very much in the bearish zone on the medium to long term.

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Stock of the Day – Godfrey Phillips

Godfrey Phillips is India’s second largest tobacco company and recent results have resulted in a strong upward trajectory for the stock though as the chart indicates, this is not the first time we have seen such huge gains over a single week. While ITC has since 2011 nearly doubled in price, Godfrey has moved nowhere ( a stagnation which if accompanied by good resuolts would mean that the stock is cheaper than it was in 2011.

The current move has been accompanied by volumes higher than when we last jumped up giving credence to the possibility of this rally continuing further. But with the stock already having risen by more than 25%, a ideal entry point will be when we see a correction unless this turns out to be a run away rally.

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Stock of the Day – Selan Exploration Tech

After years of bearishness, this stock suddenly found the legs to do the 100 meters in 5 secs :). The rise in the stock in last 4 weeks has cleared the losses a investor saw in the last 3 years. Talk about speed.

Today though the stock made a Doji. While Doji’s generally indicate indecisiveness and aren’t something to track or crow about, the fact that this has happened at the junction of the previous all time high does bring into question the ability f the stock to continue to move higher. 

As a adage goes which says “Rome wasn’t build in a day” and while we shouldn’t overly focus on just this aspect, if you are already long or intending to go long on this stock, today’s high and low (give or take a couple of percentages since markets being dynamic, we cannot be static in our expectations) will provide us with teh next clue as in whether we need to go long the stock or shall we see some amount of profit booking.

But regardless of what happens, this stock is now firmly in the grip of the bulls (for now)

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Stock of the Day – Balkrishna Industries

The long term chart of Balkrishna Industries shows a interesting trend. In 2006 when markets were in full bloom, this stock was in the grip of a strong bear trend. While it did some recovery in 2007, it could not break the high of 2006 lest alone make a all time high. 2008 affected the stock in the same way it did for much of the market.

But while rest of the markets after recovery in 2009 / 10 more or less went into a range, this stock was able to break new grounds and was able to break into the new highs in 2012. 

The stock after being in yet another range for much of 2012 and 2013 is once again breaking new ground and today tested the all time high with good delivery volumes. Unless the markets tanks, probability of continuation of the current trend remains high

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Stock of Day – Jubliant Food

A stock which was once a speculators delight fell into a broad range stiffing many trader ambitions to make enough dough to buy some pizzas :). On the weekly charts, the stock shows a Ascending Triangle pattern with today’s low being on the support trend-line. While the stock trades below the 200 bar average on the daily charts, the fact that this stock has repeatedly whipped the average gives a lower level of confidence about the ability of 200 MA to provide for direction on the short to medium term.

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Stock of the Day – Aban Offshore

A lot of theory talks about how one should look at multiple time frames before initiating a trade. Lets consider the Daily and Weekly chart of Aban and see whether looking at 2 charts makes it easy to take a call on the stock.

Below herewith is the Weekly chart;

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The weekly chart shows that the stock is pretty much below the major resistance levels we saw being created in early 2012. While the 200 average on the weekly doesn’t have any reasoning, personal observation has been that it can have an impact many a time (200 MA on weekly = 1000 MA on daily).

Now, lets move to the daily chart

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This chart shows a pretty bright picture with the stock after the first burst of momentum has seen continuation of the trend. The stock is currently just below the resistance level of 485 (which was tested today) and a move above it could theoretically move the stock to the next major resistance level (of 560 as seen on the weekly charts)