Trading Calls For-1-7-14

Investment Idea-Hindustan Zinc Ltd(28-6-14)

Investment Opportunity: Hindustan Zinc Ltd. 

Industry: Mining/Mineral/Metal

Horizon: 8 to 12 months

(NSE Symbol: HINDZINC | BSE Code: 500188)

Last closing price (27-06-2014): Rs.163.90        Face Value:-2/-

Price Background: The stock made all-time high of Rs.184 recently on9-6-14  and all-time low of Rs..44 was made in the year 1996.High and Low for the year 2013 was Rs.143.25 & Rs.94 . The low for year 2014 (as on date) is Rs.114.80.

Fundamental: The Company’s sales rose by 7.45% this year compared to last year but the EPS remained flat at 16.33.The company has declared  total dividend of 175% i.e Rs.3.50 per share. Although at the current rate, the stock is at a P/E of10.03 against the industry P/E of 15.5. Therefore, I feel that the stock still has some room to move up.

Technical: Technically the stock is nicely poised as it has made new high recently..

Recommendation: I expect a return of 25-30% in 8-12 months. I therefore recommend investing at least 30% of the marked fund for the script at the current level and then suggest buying on dips. Kindly be alert if the stock price goes below 143 and stays at that level. Please get out of the stock if price closes below 132,. 

Note:

1.    Price stated here is of spot market

2.    Recommendations are valid till the stop loss is triggered

3.    Kindly note that make your cost your stop loss in favorable trade and then trail it as the price of the stock moves up to gain maximum profit.

 Contact me for strategic guidance to enter and exit the trade

Investment Idea-Nahar Industrial Enterprises Ltd(28-6-14)

Investment Opportunity: Nahar Industrial Enterprise Ltd. 

Industry: Textile-Cotton Blend

Horizon: 12 to 18 months

(NSE Symbol: NAHARINDUS | BSE Code: 519136)

Last closing price (27-06-2014): Rs.78.15             Face Value:-Rs.10/-

Price Background: The all-time high for the script is Rs.209 was made on 13.9.2004 and all-time low of Rs.4 was made on 12.9.2000.High and Low for year 2013 was Rs.62 & Rs.27 . The low for year 2014 (as on date) is Rs.46.05 made on 20.1.2014.

Fundamental: The Company has come out with good financial result and posted Net Profit of Rs.69.25 crore for FY 2013-14 against Rs.41.84 crore for FY 2012-13. The EPS for current year is Rs.17.38 against Rs.10.50 for the last year and  company has declared dividend of 10% also. At the current rate, the stock is at very low P/E of 4.49. Therefore, I feel that the stock has good potential to move up.

Technical: Technically the stock is nicely poised.

Recommendation: I expect a return of 50-75 % in 12-18 months. I therefore recommend investing at least 40% of the marked fund for the script at the current level and then suggest buying on dips. Kindly be alert if the stock price goes below 62 and stays at that level. Please get out of the stock if price closes below 58. 

Note:

1.    Price stated here is of spot market

2.    Recommendations are valid till the stop loss is triggered

3.    Kindly note that make your cost your stop loss in favorable trade and then trail it as the price of the stock moves up to gain maximum profit.

 Contact me for strategic guidance to enter and exit the trade

CNX-Bank Index-Technical Overview For The Week Starting From-30-6-14

CNX-Bank Index closed at 14992.35 on 27-6-2014

Range for the week ended 27-6-14 was :-15341.95----14940.35

SUPPORT: - 14940.35 / 14858.90 / 14709.30 / 14468.10 / 14301.30 / 14063.60

RESISTANCE: - 15341.95 / 15461.55 / 15464.85 / 15568.05 / 15660.05 / 15725.80 / 15742.05

Index moved in the range of 400 points during the week under review and closed the week near the lowest point of the range which indicates weakness, furthermore the close was below the previous closing bottom of 14997.65 so the lower top and bottom chain on line chart continues and this indicates that the deep down correction in the index could happen in the coming week.

TECHNICAL  VIEW:-

1. It is making lower top and bottom on the line chart and still going down, to make higher top it has to cross and close above the recent top of 15309.50 & 15373.20 and to make higher bottom it has to create a bottom first since it is still going down on the closing basis, till then it should hold the level of 14793.40.

2. To make higher top & bottom on the bar chart it has to cross the recent top of 15341.95 & 15461.55 and hold the bottom 14940.35 or 14858.90 or 14709.30

3. It is still below its short term DMA which is placed at 15255 for 30-6-14(it changes every day), index to remain buoyant has to stay above its short term DMA..

4. The negative divergence is still there indicating that it can break the level of 14793.40.

5. The cluster of important averages are in the range of 14500-14250 for the start of the week i.e.  30-6-14 ,since it is increasing every day so by the end of the coming week the range would be 14690-14440.Index has to hold this range ,if it does not then it will be a cause of concern for the intermediate uptrend.

CONCLUSION: Index has to fulfill the above stated first 3 condition to negate the divergence and to confirm that the ongoing correction is over, if it does not then the correction may deepen and then the worst range for the index could be the important average range of 14690-14440 during the next week end and to keep the intermediate uptrend intact it has to hold this range, chances of which are looking reasonably good as of now. I feel that index possibly would complete the correction by next week and in the best case scenario it could bounce back from the range of 14650-14550 and in the worst case from the range of 14500--14300.

REMARKS: The month of June-14 would be ending on Monday, the month end will provide us with the indicative range for the month of July-14 and possible direction also and that will help us to make the trading relatively easy , therefore I suggest  not to trade at all on 30-6-14.

NOTE:

1.        PRICE STATED HERE IS OF SPOT MARKET.

         2. RECOMMENDATIONS ARE VALID TILL THE STOP LOSS IS TRIGGERED.
          3. IN FAVORABLE TRADE TRAIL YOUR STOP-LOSSES FOR MAXIMUM GAIN AND CAPITAL   PROTECTION. 

 Contact me for strategic guidance to enter and exit the trade

Nifty-Technical Overview- For The Week Starting From-30-6-14

 NIFTY CLOSED AT 7508.30 ON 27-6-14

Range for the week ended on 27-6-14 was:-7593.35—7441.60.

SUPPORT:-7487.55 / 7481.30 / 7477 / 7409 / 7360 / 7340 / 7263 /  7206.70 /
7193.55 / 7118.45

RESISTANCE:- 7563.50 / 7593.35 / 7663 / 7678.50 / 7700.05 / 7855 / 7988 / 8011 /  8052 / 8195 / 8310

Nifty moved in a moderate range of 151.75 points during the week and closed  near the mid -point of the range. The range bound movement indicate that a big move on either side can happen in the coming week starting from 30-6-14.

TECHNICAL  VIEW:-

1. It is still making lower top and bottom on the line chart ,to make higher top and bottom it has to cross the recent top of 7580.20 and hold the bottom of 7493.20 on the closing basis.

2. To make higher top & bottom on the bar chart it has to cross the recent top of 7593.35 and hold the bottom 7481.30 or 7441.60.

3. It is still below its short term DMA which is placed at 7552 for 30-6-14(it changes every day),nifty to remain buoyant  has to stay above its short term DMA..

4. The negative divergence is still there indicating that it can break the level of 7402 & 7229.

5. The cluster of important averages are in the range of 7274-7192 for the start of the week i.e.  30-6-14 ,since it is increasing every day so by the end of the coming week the range would be 7330-7250.Nifty has to hold this range ,if it does not then it will be a cause of concern for the intermediate uptrend.

CONCLUSION: Nifty has to fulfill the above stated first 3 condition to negate the divergence and to confirm that the ongoing correction is over ,if it does not then the correction may deepen and then the worst range for the nifty could be the important average range of 7330-7250 during the next week end and to keep the intermediate uptrend intact it has to hold this range, chances of which are looking reasonably good as of now. I feel that nifty possibly would complete the correction by next week and in the best case it could bounce back from the range of 7400-7360 and in the worst case from the range of 7340-7250.

REMARKS: The month of June-14 would be ending on Monday, the month end will provide us with the indicative range for the month of July-14 and possible direction and that will help us to make the trading relatively easy , therefore I suggest  not to trade at all on 30-6-14.

NOTE:-

1.PRICE STATED HERE IS OF SPOT MARKET.

         2.RECOMMENDATIONS ARE VALID TILL THE STOP LOSS IS TRIGGERED.

         3.IN FAVORABLE TRADE TRAIL YOUR STOP-LOSSES FOR MAXIMUM GAIN AND CAPITAL PROTECTION. 

 Contact me for strategic guidance to enter and exit the trade