Whipsaws in a consolidating market.

The current market has been very choppy in cases and very clear in some other.

Quite a lot of stocks tend to drop like a rock in a breakdown whereas some tend to whipsaw sharply.

 

Some examples below.

 

Ashok leyland

ashokleyland

 

This is one stock which got us trapped at 27 odd levels. Had to average at 24-25 to get out at bounce.

 

A couple of sessions back it gave a clean breakdown below 23 but is now back above 23. Although volumes were supportive.

 

Couple of reasons for the bounce. The dividend yield becomes really interesting at 23-20 levels.

bharatforge

 

Bharat Forge --- This was one of the short trades initiated recently. Keeping in mind the current status was booked 4-6% lower and now its possibly staging a whipsaw.

 

BOI

 

BOI --  A breakdown which did crack pretty quickly

 

hdfcbank

 

HDFC Bank ---- The stock is one of the main stay in the index not letting the Sensex/Nifty crack. Any breakdown is seen by a faster pullback.  Even HDFC Limited sees similar pullbacks.

 

Just a few quick charts posted.

 

Aditya Birla Nuvo one of the stocks recommended at 800-820 as entry price has dropped a bit more to 730-750 levels. Still remains a fundamental call with a medium to long term view. Continue to hold and add. Technically 740-700 seems a strong support. Will keep a long term stop on weekly closing below 700.

 

Some stocks under research --- Repro, Aarti Drugs , Mazda Ltd, Atul Auto , Puneet Resins ---- Just came on my screeners if people tracking please post a comment or mail.

 

TECHNICAL ANALYSIS TRAINING PROGRAMS PLANNED FOR JANUARY.

 

Also for people who cannot join at our courses in Mumbai or other cities we have started conducted a 2 day online training program. For more details of the schedule speak to Kazim 09821237002 or mail to analyseindia@analyseindia.com

 

A nice sms and bbm being forwarded of late.

 

Sale  * Sale*  Sale
Share mkt me jabardast sale,
Sugar sector pkd- 85/- Renuka, bajaj hind & balarampur
Bank sector pkd -
500/- me 7 Bank
IDFC, IDBI, UCO, DENA, VIJYA, ANDRA & SYNDI.
Infra sector pkd-
85/- me
GMR, LITL, IVRCL, GTL & SREI Infra
Realestate Sector Pkd- DLF, HDIL, Unitech & IBR only Rs 300/-
Very Spl offer in Branded items-
KSOIL - Only 6/-
Punj- only 38/-

 

Happy Investing and a Happy Christmas ,

 

Nooresh Merani

 

nooreshtech@analyseindia.com

5 Comments

  1. jagdish k modi
    December 23, 2011

    hello sir silver and gold me kya lagta he pls ans me

    Reply
  2. Gandhe srinvas
    December 25, 2011

    Dear Nooresh sir

    Since the year is gone expectiing the results in january we bet on which bank in these three banks ICICI v/s HDFC BANK V/s Axis bank

    Please let me know inlarge caps for potential 8-10% returns in next 10-15 days

    Reply
    1. nooresh
      December 26, 2011

      I would be betting on Axis and Icici on dips if i am forced to else no bets 🙂

      On the large caps side right now moves are not big of 10% and that too clean moves, But BHEL and LnT look good.

      Reply
  3. saurabh shankar
    January 4, 2012

    Hi Nooresh,

    Is piramal healthcare in breakout/trading range now?

    regards,
    saurabh

    Reply
    1. nooresh
      January 4, 2012

      Hi Saurabh,

      Yes it is making new highs but no momentum.

      Reply

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