TECHNICAL INDICATORS TO BUY AND SELL

ABG Shipyard | BSE CODE: 532682 | Face Value: Rs. 10 | CMP: Rs. 149

The stock is currently trading at Rs 149. Its 52-week high/low stands at Rs 309 and Rs 138 as on June 2, 2014 and May 21, 2015 respectively. On the weekly time frame chart, the stock has been trading between the ranges of Rs 273 to Rs 188 for the last 10 months. Recently the stock has breached its important support level of Rs 188 on the weekly chart and this breakdown has been accompanied with above average volumes, which indicates that liquidation has been happening in this counter. The technical indicators are beaming pessimistic signals as the stock is trading below its 30-week simple moving average. The momentum oscillator like the 14-period RSI is in a declining mode and not in the oversold region. The RSI has breached its important support level of 34. Considering the negative technical set-up, it seems the stock will remain under pressure.

CESC | BSE CODE: 500084 | VOLUME: Rs. 10 | CMP: Rs. 560

The stock is currently trading at Rs 560. Its 52-week high/low stands at Rs 827 and Rs 517 as on September 16, 2014 and May 7, 2015 respectively. Technically the stock is in a long-term downtrend as it is trading below its long-term moving average, i.e. 200-day simple moving average. On the daily time frame chart, the stock has formed a reversal candlestick pattern, i.e. a potentially doji candlestick pattern as on May 21, 2015 along with huge volumes, which is negative for the stock. The doji candlestick is followed by a big bearish candlestick pattern as on May 22, 2015; this provides confirmation that the stock will continue its downward movement. The 14-day RSI is below its 9-day EMA, which is negative for the stock. Currently the stock is hovering around the crucial support level of Rs 559 as defined by the Fibonacci retracement. Once the stock sustains below this level, expect a further correction.

Dena Bank | BSE CODE: 532121 | Face Value: Rs. 10 | CMP: Rs. 48

The stock is currently trading at Rs 48. Its 52-week high/low stands at Rs 94 and Rs 47 as on June 9, 2014 and March 26, 2015 respectively. Technically the stock is in a long-term downtrend as it is trading below its long-term moving average, i.e. 200-day simple moving average. On the weekly time frame chart the stock had seen a breakdown of the bearish head and shoulder pattern as of the week ended January 30, 2015; along with the above average volume this is negative for the stock. Post the head and shoulder breakdown the stock has been forming a sequence of lower top lower bottom pattern and this again suggests that the stock is in a downtrend. The momentum oscillator like the 14-period RSI is in a declining mode and not in the oversold region. With choppiness in the Bank Nifty Index and a bearish chart formation, it seems wise to stay away from the stock.[PAGE BREAK]

Elder Pharma | BSE CODE: 532322 | Face Value: Rs. 10 | CMP: Rs. 82

The stock is currently trading at Rs 82. Its 52-week high/low stands at Rs 234 and Rs 80 as on June 11, 2014 and May 22, 2015 respectively. The stock on its daily chart is trading below its important moving average, i.e. 200-day simple moving average; this suggests that the stock is in a downtrend. On the weekly time frame chart after registering a lifetime high of Rs 474 the stock has formed a sequence of lower top-lower bottom. Recently the stock breached its important support level of Rs 96-97 on the weekend of March 20, 2015 along with a rise in the volume, which is negative for the stock. The 14-day RSI is below its 9-day EMA, which is negative for the stock. With the daily and weekly technical set-up looking bearish, it’s likely that the stock will move further downwards.

IL&FS Transportation Networks | BSE CODE: 533177 | Face Value: Rs. 10 | CMP: Rs. 159

The stock is currently trading at Rs 159. Its 52-week high/low stands at Rs 258 and Rs 155 as on July 21, 2014 and May 18, 2015 respectively. The stock on the daily chart is trading below its important long-term moving average, i.e. 200-day simple moving average and this suggests that the primary trend of the stock in a downtrend. After registering a 52-week high of 258 the stock formed a reversal candlestick pattern and entered into a sideways correction phase. It found support around the level of Rs 166 and entered into a short-term uptrend, registering a lower top of Rs 217.5. In addition, the price has reversed exactly from its downward sloping trend line resistance. Recently the stock has breached its important support level of Rs 166 along with huge volume and this is a negative signal for the stock. The momentum oscillator is in a declining mode and not in the oversold region. Considering the above technical factors we are of the view that this stock could be an underperformer.

Jaiprakash Associates | BSE CODE: 532532 | Face Value: Rs. 10 | CMP: Rs. 17.80

The stock is currently trading at Rs 17.80. Its 52-week high/low stands at Rs 89.90 and Rs 17.65 as on June 11, 2014 and May 22, 2015 respectively. The stock on the daily chart is trading below its important long-term moving average, i.e. 200-day simple moving average and this suggests that the stock is showing a negative bias for the long term. On the daily chart the stock has witnessed a breakdown of the descending triangle as on April 27, 2015 with big bearish candlestick; this is negative for the stock. The stock price has started to slide for the next falling leg of correction. It has also breached its important support as defined by its long-term trend line joined from a low of Rs 28.35 as on August 19, 2013. The 14-day RSI is below its 9-day EMA, which is negative for the stock. Traders and investors could see further correction in this stock.

Bharat Forge | BSE CODE: 500493 | Face Value: Rs. 10 | CMP: Rs. 1224

The stock is currently trading at Rs 1,224. Its 52-week high/low stands at Rs 1,363 and Rs 458 as on April 6, 2014 and May 26, 2015 respectively. The stock on the daily chart is trading below its important short-term moving average, i.e. 21-day simple moving average; this suggests that the stock is showing a negative bias for the short term. On the daily time frame chart the stock has formed multiple top in the range of Rs 1,325-1,333 in the last couple of weeks. This suggests that the stock is facing strong resistance at the higher levels. On the daily chart it has formed a bear candle along with reasonable volumes. Recently the stock breached its important Fibonacci support level of Rs 1,236. Going forward if the stock breaches its next support level of Rs 1,158 it could trigger fresh correction in the stock. The momentum oscillator is showing negative divergence and is in a declining mode.[PAGE BREAK]

SAIL | BSE CODE: 500113 | Face Value: Rs. 10 | CMP: Rs. 66

The stock is currently trading at Rs 66. Its 52-week high/low stands at Rs 113 and Rs 65 as on June 9, 2014 and March 11, 2015 respectively. The stock on the daily chart is trading below its important long-term moving average, i.e. 200-day simple moving average; this suggests that the stock is showing a negative bias for the long term. On the weekly time frame the stock has seen a breakdown of a triangle pattern; this pattern is bearish in nature. The stock has also breached its important support level of Rs 66.38 as defined by the Fibonacci retracement. The momentum oscillator RSI is in a declining mode and this is negative for the stock. The 14-day RSI is below its 9-day EMA, which is negative for the stock. Taking into consideration the above technical factors, the stock prices are likely to move southwards. 

Jai Corp | BSE CODE: 512237 | Face Value: Rs. 10 | CMP: Rs. 58

The stock is currently trading at Rs 58. Its 52-week high/low stands at Rs 117 and Rs 50 as on July 9, 2014 and March 26, 2015 respectively. The stock is trading below its important long moving average i.e. 200-day simple moving average, indicating overall weakness in the stock. On the daily time frame, the stock is facing strong resistance as defined by a downward sloping trend line joined from a high of Rs 112.30 as on September 11, 2014. The stock has also formed a bearish reversal pattern, i.e. an evening star pattern as on May 22, 2015 around its trend line resistance. Any rise towards the resistance level shall add supply in the stock as indicated by the downward sloping trend line. On the oscillator, the RSI has formed a double top around a level of 58-61. Therefore we expect the stock to move downward in the coming trading session.

Videocon Industries | BSE CODE: 511389 | Face Value: Rs. 10 | CMP: Rs. 147

The stock is currently trading at Rs 147. Its 52-week high/low stands at Rs 211 and Rs 143 as on June 10, 2014 and March 27, 2015 respectively. The stock is in a downtrend, forming lower lows and lower highs on the daily charts. The stock is also trading below its short and long-term moving average of 21 with the 200-day simple moving average indicating weakness in the stock. The stock has traded below its important support level of Rs 156-157; this suggests that every ride is a selling opportunity in the stock. The momentum oscillator like the 14-period RSI is in a declining mode and not in the oversold region. The 14-day RSI is below its 9-day EMA, which is negative for the stock. Considering the above factors, the stock is likely to underperform in the short and long term.