BANK NIFTY FUTURE WEEKLY

BANK NIFTY FUTURE WEEKLY





In the above chart, I have drawn Andrew's Pitchfork with starting point A as Jul 2006,  point B as High of 13320 and point C at low of 7750. When doing so, the median line has provided perfect resistance at the recent all time high of 13348.

While making a new high at 13348, it has also made a double top and corrected sharply to make a recent low of  8349 at 50% level. In the last three days, Bank Nifty future has gone up over 19% from the recent low of 8349. This sharp up move has given an impression that the worst is over for this sector. In the week ahead, it may find strong resistance around 10200 being the lower parallel line as well as 0.382 Fib level of 10250.

 

Secondly, on the attached chart I have marked the time (in weeks) it has taken for each of the major moves. You will observe that the fall has lasted for 59 weeks where as the up move has been for 88 & 73 weeks. This shows that the sharp up move may just be a correction to the sharp fall as we are just into the 15th week of the fall.

 

Keep Learning!

Ketan Asher.
 

NIFTY FUTURE MONTHLY CHART

NIFTY FUTURE MONTHLY CHART

 

 

In the attached monthly chart of Nifty Future, I have drawn Andrew's Pitchfork, wherein you will observe that lower parallel line was providing support on many occasions in the past.

Current month candle is now decisively out of the lower parallel line and had a free fall yesterday. As shown on the chart, we can expect it to take support around @ 5380 being 50% level and thereafter @ 5180 being 0.618 fib level as well as trend line support. This can go down till 5100 being the open = low level shown on the chart on 3.8.2012. In achieving this level, Nifty Future will fill two more gaps (of the many more yet to be filled further down).

Investors and Traders, both need to be cautious as we may have just begun the down move.

With Best Wishes,

Ketan Asher.

THREE LOW VALUE STOCKS FOR 2013

3I INFOTECH LTD. MONHTLY

FIRSTSOURCE SOLUTION LTD. MONTHLY



 

TTML MONTHLY


WISHING YOU ALL A VERY HAPPY & PROSPEROUS 2013.

 

I have attached monthly charts for 3I InfoTech, Firstsource Solution Ltd and Tata Tele Ltd. All these stocks are low priced and have gone through lot of bad times in the past few months. Though the indices are trading near their 52 week high, these 3 stocks are near their all time lows. Importantly, all these 3 companies belong to good managements. The merits of investment in these companies is discussed below:





3i INFOTECH LTD.

This IT company's shares are held by 11 banks including ICICI and all of them together, hold 50.89% shares in  this Company. On the attached chart you will find that Company has made a low of Rs. 7.05 during the past 3 months. It has now crossed the trend line (in blue) which suggests that worst could be over for this stock. On the higher side,  25 is likely to offer strong resistance.

FIRSTSORCE SOLUTION LTD.

One more Company from ICICI stable has recently been bought over by RP Goenka group. On the attached chart you will find that the Company  made a low of Rs. 5.55 and is ready to cross the trend line (in blue). It will gain momentum once above the resistance at 15. On the higher side it will find resistance at 25.

TATA TELE MAHARASHTRA LTD.

This Company belongs to TATA group and operates in telecom sector which has been going through tough times for quite sometime now. Since the time I posted this Company sometime back, the shares have been trading around Rs. 12 . On the chart you will find that this Company  too it is ready to cross the trend line which  suggests that the worst could be over for this stock.. On higher side it will find resistance at 19 and 25.

In case you find these Companies investment worthy, it will be better to consider equal investment in all 3 of them and hold them for at least a year. In that case you will benefit even if fortune of even one of them changes.

With Best Wishes,

Ketan Asher.