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.
 

TTML & A B NUVO MONTHLY CHART

ADITYA BIRLA NUVO MONTHLY

TTML MONTHLY

  

  

WISHING YOU A VERY HAPPY & PROSPEROUS NEW YEAR.

 

TTML:

 

TTML is a telecom provider and this sector is known for all that can go wrong for the past couple of years. This stock has been trading @ Rs. 11.40 after being beaten down for the past 49 months. From the attached monthly chart, you will observe that this stock has been trading just above Rs. 10 for the past 3 months. More importantly, you will observe that it is now poised to cross the trend line when it starts trading above Rs. 12.30.

 

Considering that the other items of this sector (Bharati, Idea etc.)  are going up, it is just a matter of time when the trend line will be broken on the up side and the current market price provides a low risk opportunity to acquire this stock. On the way up, 15 -19 and 25 will provide resistance.

 

 

A B NUVO:

 

A B Nuvo is a diversified company from Aditya Birla Group. From the attached Monthly chart, you will observe that this Company has been trading in narrow range of Rs. 350 for the past 40 months. This Company has significant holding in IDEA Cellular.

 

With the price of Idea Cellular improving in the past few days, there is a good possibility that market price of this stock will finally break out of the upper range at 1050. Once this break out happens, we can expect the price to go up to 1400-1500 range.

 

Both the above stocks look good to buy at the Current Market price.

 

With Best Wishes,

 

Ketan Asher.

 

 

 



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