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Stocks in the news this week (Apr 17, ‘14)

Posted by on April 17, 2014 20:52 pm · 122 views

in Stock Trading

As human beings and investors, we are prone to biases in our decision making. ‘Recency bias’ clouds our minds if a recent event had caused a lot of pain – like losing money by buying or selling near a market top. Three days of profit booking by FIIs (they can’t go on buying all the […]

WTI and Brent Crude Oil charts: bulls fight back

Posted by on April 15, 2014 20:51 pm · 300 views

in Stock Trading

In a previous update to the daily bar chart pattern of WTI Crude oil, a bearish ‘rising wedge’ pattern was forming. It was expected that oil’s price would break downwards from the wedge. Since technical analysis is not a science but based on empirical observations, patterns don’t always play out as expected. Note that oil’s price broke […]

S&P 500, FTSE 100 charts: facing sharp corrections

Posted by on April 14, 2014 20:07 pm · 357 views

in Stock Trading

Several bearish signals led to the following concluding comments in last week’s analysis of the daily bar chart pattern of S&P 500: “Maintain a stop-loss at 1840 to protect profits. A drop below 1840 would confirm an intermediate top at 1897. A deeper correction may follow.” After bouncing up from the 1840 level in the early part of […]

Of all the stories and incidents related in the epic ‘Mahabharata’ there are none more valiant nor tragic than the story of Abhimanyu. While still in the womb of his mother, Subhadra (who was Lord Krishna’s sister), the yet unborn son of Arjuna heard and remembered the details of a defensive military formation – called […]

Sensex, Nifty charts: continue to touch new highs

Posted by on April 12, 2014 21:15 pm · 595 views

in Stock Trading

For the financial year ended Mar 31 ‘14, India’s exports grew by 4% (to $312.35 Bn); imports dropped by 8% (to $450.94 Bn), leading to a 27% drop in the trade deficit. However, for the month of Mar ‘14 the trade deficit rose by 29% over Feb ‘14 due to lower exports. With visible recovery […]

Stocks in the news this week (Apr 10, ‘14)

Posted by on April 10, 2014 20:32 pm · 810 views

in Stock Trading

Bulls (i.e. FIIs) have been on the rampage for a while, with market indices scaling new highs regularly. All kinds of stocks are ‘getting discovered’ by those who could not or did not buy when indices were at lower levels. Though absolute values of Sensex and Nifty are at their highest ever levels, the numbers […]

Gold and Silver charts: bears regain control

Posted by on April 8, 2014 19:58 pm · 732 views

in Stock Trading

The 6 months daily bar chart pattern of gold rallied splendidly from the beginning of the year and gained more than 200 points before topping out with a ‘reversal day’ pattern on Mar 17 ‘14. Gold’s price rose convincingly above its 200 day EMA – supported by a volume surge. But that wasn’t enough to […]

The daily bar chart pattern of S&P 500 broke out above the rectangular range within which it was trading since the beginning of Mar ‘14 – but it turned out to be a joke on All Fool’s Day. There was no accompanying surge in volumes to validate the upward break out. The index managed to […]

Sensex, Nifty charts: correcting overbought conditions

Posted by on April 5, 2014 18:43 pm · 755 views

in Stock Trading

RBI maintained status quo on interest rates – as was widely expected by economists and analysts. The stock market treated it as a non-event. With predictions of El-Nino doing the rounds, a weak monsoon during Jun-Sep period is a possibility. If the predictions do come true, food prices are going to move up. RBI may […]

Technical updates – Thermax and Voltas

Posted by on April 3, 2014 20:42 pm · 512 views

in Stock Trading

India’s GDP growth has been shrinking for the past several quarters due to a combination of poor governance, rampant corruption, faulty populist policies and burgeoning fiscal and current account deficits. High inflation kept interest rates high, which in turn led to lower capital expenditure that stunted growth. Not surprisingly, infrastructure stocks had borne the brunt […]

Nifty chart: a mid-week update (Apr 02 ‘14)

Posted by on April 2, 2014 20:50 pm · 514 views

in Stock Trading

A long consolidation within a ‘rectangle’ pattern, Nifty broke out upwards on a volume surge that validated the break out. Rectangles have measuring implications – as mentioned in a previous post: the height of the rectangle (about 400) is added to the break out point (about 6350) for a minimum upward target of 6750. This target […]

The following comments were made in last week’s analysis of the daily bar chart pattern of S&P 500: “All three technical indicators are in bullish zones, but showing negative divergences by touching lower tops. A consolidation or corrective move is likely. Has the index formed a ‘double top’ reversal pattern? Technically, the answer is ‘no’.” […]

Sensex, Nifty charts: soaring in ‘blue sky’ territory

Posted by on March 30, 2014 16:01 pm · 634 views

in Stock Trading

An appreciating Rupee, falling inflation, contracting Current Account Deficit, growing exports and concerns about economic slowdown in China and many emerging markets have turned India into a favoured destination for overseas investors. RBI extended the deadline for implementation of Basel III capital raising norms by a year. PSU banks celebrated the news. With inflation coming […]

Stocks in the news this week (Mar 28, ‘14)

Posted by on March 28, 2014 19:18 pm · 558 views

in Stock Trading

With Sensex and Nifty touching new highs on a daily basis, the last of the bears may be throwing in the towel – as can be seen from a host of stocks breaking out of long downtrends or consolidation zones. Even stocks of realty companies are beginning to show signs of life after being shunned […]

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