CNX-Bank Index-Technical View For-27-8-14

CNX-Bank Index closed at 15624.10on 26-8-2014

SUPPORT: -15592.80 / 15568.05 / 15499.70 / 15267.60 / 15137.60 15089 / 14933  / 14858.90 / 14857.50/ 14709.30 / 14709.10 / 

RESISTANCE: - 15626.90 / 15725.80 / 15742.05 / 15817.55 / 15865.30 / 15973.35 / 16308 /.

  (Figures in bold are important)

Index opened gap down today and made a low of 15503.40 and thereafter moved up and filled the gap and made a high of 15674.55 for the day before closing the day at 15624.10.It has closed below the previous day’s low today therefore still showing some sign of weakness, therefore I would suggest to be cautious in long trade and avoid fresh long call below 15625.45 for sure. However those who are already having long position should get alert if it starts trading below 15448 and get out of the long trade if it closes below 15274 and stays.  Kindly note that going up it will face good resistance at 15750 & 15890.

REMARK:- Long term trend is still up. I suggest to avoid fresh long call below 15625, try fresh long call near 15270-15350 with a stop loss of below 15250.

Kindly note that make your cost your stop loss in favorable trade and then trail it as the price move up/down to gain maximum profit and avoid losses. Use support and resistance levels as entry, exit, target and trailing stop loss points. DO NOT TRADE WITHOUT STOP LOSS

Note: Price stated here is of spot market

Contact me for strategic guidance to enter and exit the trade

Nifty-Technical View For-27-8-14

NIFTY CLOSED AT7904.75  ON 26-8-14

SUPPORT: -7870 / 7855.95 / 7840.95 / 7808.85 / 7731.05 / 7721.30 / 7700.05 / 7662.50 / 7598.60 / 7593.90 / 7563.50 / 7540.10 / 7487.50 / 7481.30 / 7447.20/ 7441.60 / 7422.15 / 7206.70 / 7118.45.

 RESISTANCE:-7913.20 / 7929.05 / 7931.75 /  7940 / 7968.25 / 8027 / 8050 / 8130 / 8330.

   (Figures in bold are important)

Nifty opened gap down today and made a low of 7862.45 and thereafter moved up and filled the gap and made a high of 7915.45 for the day before closing the day at 7904.75. Please be cautious in long trade and get alerted if it starts trading below 7880 and off course avoid fresh long call below this point and get out of the long trade if it closes below 7766 and stays, one can try long call near 7766-7800 range with a stop loss of below 7760. Kindly note that going up it will face good resistance at 7940,7968.25&7995.

REMARK:- Long term trend is still up, I suggest to buy on dip but be cautious on long trade and avoid fresh long call below 7880 for sure. Avoid impulsive trade.

Kindly note that make your cost your stop loss in favorable trade and then trail it as the price move up/down to gain maximum profit and avoid losses. Use support and resistance levels as entry, exit, target and trailing stop loss points. DO NOT TRADE WITHOUT STOP LOSS

Note: Price stated here is of spot market

Contact me for strategic guidance to enter and exit the trade

CNX-Bank Index-Technical View For--26-8-14

CNX-Bank Index closed at 15669on 25-8-2014

SUPPORT: -  15626.90 / 15592.80 / 15568.05 / 15499.70 / 15267.60 / 15137.60 15089 / 14933  / 14858.90 / 14857.50/ 14709.30 / 14709.10 .

RESISTANCE: - 15725.80 / 15742.05 / 15817.55 / 15865.30 / 15973.35 / 16308.

  (Figures in bold are important)

Index opened flat today and steadily moved up throughout the day and maintained it for considerable period of time and made a new all time high of 15973.35 and thereafter all of a sudden started moving down in last hour trade and made a low of 15625.45 before closing the day near the low at 15669.It made a key downward reversal today therefore I suggest to avoid fresh long trade below 15625.45 for sure. However those who are already having long position should get alerted if it starts trading below 15448 and get out of the long trade if it closes below 15258 and stays.

REMARK:- Long term trend is still up. I suggest to avoid fresh long call below 15625, try fresh long call near 15250-15350 with a stop loss of below 15230.

Kindly note that make your cost your stop loss in favorable trade and then trail it as the price move up/down to gain maximum profit and avoid losses. Use support and resistance levels as entry, exit, target and trailing stop loss points. DO NOT TRADE WITHOUT STOP LOSS

Note: Price stated here is of spot market

Contact me for strategic guidance to enter and exit the trade

Nifty-Technical View For-26-8-14

NIFTY CLOSED AT7906.30  ON 25-8-14

SUPPORT: -7870 / 7855.95 / 7840.95 / 7808.85 / 7731.05 / 7721.30 / 7700.05 / 7662.50 / 7598.60 / 7593.90 / 7563.50 / 7540.10 / 7487.50 / 7481.30 / 7447.20/ 7441.60 / 7422.15 / 7206.70 / 7118.45.

 RESISTANCE:-7913.20 / 7929.05 / 7931.75 /  7940 / 7968.25 / 8027 / 8050 / 8130 / 8330.

  (Figures in bold are important)

Nifty opened flat to positive today and steadily moved up throughout the day and maintained it for considerable time and made a new all time high of 7968.25 and thereafter all of a sudden started moving down in last 45 minutes trade and made a low of 7897.95 before closing the day near the low at 7906.30.Today’s move almost made a key downward reversal had it closed below 7900.05 but any way the move was disturbing , therefore one should be cautious in long trade. Kindly be alert in long trade if it starts trading below 7860 and off course avoid fresh long call below this point and get out of the long trade if it closes below 7760 and stays. Kindly note that going up it will face good resistance at 7940,7968.25  &7995.

REMARK:- Long term trend is still up, I suggest to buy on dip but be cautious on long trade and avoid fresh long call below 7860 for sure. Avoid impulsive trade.

Kindly note that make your cost your stop loss in favorable trade and then trail it as the price move up/down to gain maximum profit and avoid losses. Use support and resistance levels as entry, exit, target and trailing stop loss points. DO NOT TRADE WITHOUT STOP LOSS

Note: Price stated here is of spot market

Contact me for strategic guidance to enter and exit the trade

Investment Ideas For 12--18 Months

Investment Opportunity: Force Motors. 

Industry: Automobiles

Horizon: 12 to 18 months

(BSE Symbol: FORCEMOT| BSE Code: 500033)

Last closing price (22-08-2014): Rs.804.40     Face Value:-Rs.10/-   Book Value:Rs.930.20

Share Holding Pattern: Promoters-56.54%   &    Public-43.46%

Price Background: The all-time high for the script is Rs.1045 was made on 5.10.2010 and all-time low of Rs.54.50 was made on 6.3.2009 . High and Low for year 2013 was Rs.495 & Rs.225 . The high & low for year 2014 (as on date) is Rs.858 & 281.65 made on 19.8.2014 & 14.2.2014.

Fundamental: The Company has come out with good financial result and posted Net Profit of Rs.77.84 crores for FY 2013-14 against Rs.14.42 crores for FY 2012-13 giving an  EPS of Rs.59.08 for 2013-14 against Rs.10.95 for 2012-13.The company has declared dividend of 30% for the year 2013-14.The company clocked  a sales of 545.01 Cr for the June-14 quarter which is 8.06% higher then the corresponding June-13 quarter but if you compare it with March-14 quarter then the sales are marginally down by 3.72%.The net profit for the June-14 qtr is up by 35.94%then the corresponding June-13 qtr giving a quarterly EPS of Rs.14.72 based on this we can  conservatively assume that if other things remain the same it can clock an annualized EPS of Rs.62/ furthermore the automobile sector doing good can also help to achieve better financial results, therefore at current price the stock is running at a P/E of 12.97 on 2014-15 EPS and at a P/E of 13.61 on 2013-14 EPS whereas the industry P/E is between 47--57.Therefore, I feel that the stock  is under -valued and has a good potential to move up from here.

Technical: Technically the stock is nicely poised.

Recommendation: I expect a return of 50-75 % from here in 12-18 months. I therefore recommend investing at least 20% 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 620 and stays at that level. Please get out of the stock if price closes below 531 and stays for 2-3 days. 

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