CENTURY TEX WEEKLY CHART

 

CENTURY TEX WEEKLY

 

 

 

 

 

 

 

 

On the attached weekly chart (Futures), you will observe  that this stock has been making higher top/higher bottm for the past 7 weeks and closed  last week at 391 after making a new 52 week high of 395.

 

My observations are as follows:

 

1.  Current market price (CMP) is close to the previous high of 391 and 397.

2. As shown on the attached chart, CMP  is close to the 50% level of 405.

3. At around 425 we have multiple  resistance of the trend line (in Blue) and Andrew's Pithfork

    Median Line (in Red).

 

In view of the above, 405-425 level could provide strong resistance. Hence, those holding long positions  will do well to trail the position  with stop loss of 380.

 

I must add here that stock will gain strength  when it manages to cross the median line (425) hence short position should be avoided or be held with tight stop loss of 425. Considering that the stock has made a new 52 week high, buy on corrections would be a better strategy.

 

With Best Wishes,

 

Ketan Asher.

13.10.2012



 

 

    DCB MONTHLY CHART

The attached monthly chart of Dev. Credit Bank, indicates that it is ready to break out of a triangle - once it trades above Rs. 44/= during Oct 2012. Considering that it is ready to break out, it would also be good idea to invest even  on declines with stop loss of Rs. 40/=.

 

On the way up, it will find resistance at 53 - 60 and 64. As indicated on the chart, 91 will be a strong resistance  area and triangle target, however that will take some weeks/months.

 

With Best Wishes,

 

Ketan Asher.

BANK NIFTY FUTURE, SBI FUTURE & DCB

SBI FUTURE WEEKLY / DCB MONTHLY

BANK NIFTY FUTURE WEEKLY

BANK NIFTY FUTURE:
In the attached chart you will observe that after taking support on the lower parallel line (in Blue) of Andrew's Pitchfork, Bank Nifty Future has been showing strength for the past five weeks - with the last week's close (10643) near the high of the week.
One can consider going long - on declines, with stop loss of 10500 ( mid-point of the range shown on chart in Red). On the way up, 11000-11200 is a major resistance for various reasons shown on the chart. However, if Bank Nifty Future manages to break the trend line resistance near 11200 levels, it can then go up to 12000-12500 and face resistance (marked in Red downside arrows) at the median line as had happened in the past. Though this sounds like wishful thinking today, it seems possible in the event - RBI reduces the Bank Rate, as was done by ECB last week.
As Bank Nifty shows strength, the same is ought to get reflected in many of the Bank stocks. I have identified two stocks which are discussed below:
SBI FUTURE WEEKLY:
On the attached chart, you will find that the price is ready to move out of the trend line. One can consider going long – on declines, with stop loss of 2150. On the way up, it will face resistance at 2300-2325 and major resistance at 2540-2550 range.
DCB MONTHLY:
On the attached chart, you will find that the price is in the range of 30 to 75 for the past 28 months. It is now close to breaking the triangle formation when the price moves above 49. Considering that Bank stocks are showing strength, one can consider buying the stock in anticipation of the breakout. The stock closed at 45.50 last Friday. One can consider going long – on declines, with stop loss of 42. Though triangle breakout above 49 gives target price of 94 (shown on the chart), on the way up, it will face resistance at 53 – 66 and 75.

Please do not trade/invest without STOP LOSS.

With Best Wishes,

Ketan Asher.