HLL - Interesting Pattern

HLL is one of my favourite stocks to invest. I have always managed to lose money almost every time I have entered this stock. Inspite of so many different entry strategies, this stock has always been surprising me. Anyways, here is a new one. This is more on the exit strategy rather an entry one.

The stock behaves well with the RSI chart and generally tends to correct itself after a good run at 70 Levels in the RSI chart. Now I do not know if this will work forward :D

Tata Chemicals - Small movement

Tata Chemical has seen some significant correction since its previous high that it almost reached twice between October and February last year. The stock has corrected ~25% since then. The stock retracted 12% after it reached it s low at 187.

• The stock is now at 38.2% in the Fibonacci charts. A good resistance level.
  
• The stock is still trading below its 200 day moving average, which is still not a good sign for the stock
• MACD is on the positive zone, though there is some tapering in the height of the column bars
• RSI is moving into the zone of being expensive.
• The accumulation/distribution is showing some strength in this movement, which a good sign as investors/speculators are not using this movement to get out of the stock
  

The targets for the stock would now depend on the next movement in this stock. It has to break 210 and possibly 215 before the movement is a confirmed one. Though not too excited as this will be the resistance in this stock (~50% Fibonacci retracement level). Enter with caution as the downside is at 180 levels (~10% downside)

Autoaxles : Volumes Up

There is a possibility of a break out in Autoaxles India for the following reasons

• The stock is back to its historical average trendline.
• There is a fibonacci support at this level of Rs. 570. This is a strong 50% support point for the stock
  
• The volumes on this stock are up as seen in the accumulation distribution chart
• MACD is still in the positive zone of the rally and RSI is still not showing the stock as expensive

The nest support for the stock would be at Rs. 530, downside of 7% and there is an upside resistance at Rs.610, an upside of 3%. Enter with caution.

Grasim - Resistance Level

Grasim has entered one support point at 2164.

• MACD is still on the negative zone and the column bars are on the rise
• RSI is on an all time LOW
• The accumulation distribution chart is showing some signs of revival.
  

So I would wait for this stock for MACD to show some signs of resistance. Ideal entry point would be at around 2220 level and start accumulating the stock. However, the next level to watch would be 2330 and see if it can break that level.

HLL Support Zone

HLL has entered into a support zone. The stock has been sliding from its high of Rs. 290 last year. The stock has been following a channel pattern in this downside too. This might not happen this time considering one of the long term support points in this stock. This has been reached twice in the past, once in July and again in January and has received a decent support at this price.

• Stock is currently trading below its 200 day moving average.
• MACD is still on the 'sell' zone but RSI is in a more comfortable zone at late 30s.
• The stock is just off the upper side on the channel and is riding the downside of the stock.
• Volumes in the Accumulation Distribution chart is still not interesting either.

The stock could just stage a small comeback or stay at these level before falling further. The stock is rising on small volumes but falling on higher volumes indicating the overall weakness of this stock. On the lower side, the target price is at Rs. 186 and on the higher side the first target would be at Rs. 220 and then Rs. 226.

GSK -Volumes picking up

GSK is seeing some positive movement in its share price over the past five trading sessions. A stock that has not been participated in this rally, the stock has been seeing some volume being built last week.

• There is a small 'buy' signal indicated from MACD. RSI, though is one the higher side - approximately 60s.
• The stock is just above its 200 day moving average.
  
• The most interesting for this stock is in the Accumulation Distribution chart. This is the longest upward that the stock has seen in sometime. The previous instances has not seen more than 2 trading sessions with strong volumes before falling

I would wait a bit more if I am a cautious investor as I would like to see if investors are using the stock to move out of this stock or not. Targets on the upper side would be at Rs. 1250 and the downside could be at Rs. 1100.

Havells - A downturn

Havells had a very good run from July last year. The stock has more than doubled in this period. Infact the stock has moved quite rapidly in the past few days. However, the stock is seeing some correction in the market now. The stock surged 20% in one single trading day on strong volumes. Since then, the stock has seen some correction.

• MACD is close to giving a 'sell' signal and the column bars are reducing
• RSI is still in the zone of expensive. Though, the stock is still yet to give a signal of 'overbought'
• The stock needs to be looked at in the Accumulation Distribution segment. The stock's volume is increasing rapidly and causing a deep fall in the market.

The stock is in a comfortable margin over the 200 day average. Hence, still not a problem. However, these are the following stop losses : Rs. 417 on the lower side and Rs. 471 on the higher side. Given the negative break out in the stock, look till this stabilises. One note of concern: This is a volatile stock and revaluation is too quick and sharp.

Ashok Leyland - Technical Update

Ashok Leyland is entering into a nice triangle. The triangle however has mostly entered into a phase of "no clear signal" zone. The volumes are not clear for defining a clear triangle.

• The zone has entered into a nice resistance zone at this current level. This is the third time that it has reached this level.
  
• MACD is still on the positive zone. The column bars are still giving any indication or signal for a reversal of trend.
  
• RSI is still at high 60s. The last time we had correction at this level.
• Accumulation and Distribution chart is still on the upmove. The last few weeks is showing some resistance on the volume charts too.
• The stock is comfortably above the 200 and 100 day moving average.

Given the current stock levels, it is important for it to break Rs. 47. If it breaks this level, then it can break Rs. 50 else it can get back to Rs. 45-44.

Arvind Mills - Not a strong movement

Arvind Mills is running under some really tough times. The stock has seen some revival over the past couple of days. After reaching an 52 week low at Rs. 45, the stock is currently trading at Rs. 57. One of the FIIs had taken a big stake at these levels last time.

• The stock is currently trading below its 100 and 200 day moving average.
• MACD is still on the positive zone. Though the signal line is trading almost parallely.
• The stock is seeing some significant volumes. However, when one looks at the Accumulation Distribution, the story is a bit different. The rally is mostly on the downside for this stock.
• Given the recent rise in this stock, RSI is on the higher side at close to 70.
  

The two important factor to enter into this stock would be fresh buying indicated by Accumulation Distribution chart for this stock. Some of the intermediate triggers would be at 59 and 62. These are levels which the stock found it difficult to break in July last year. Post this, breaking the 200 day average would be the next target. The downside would still be at Rs.51 and then at Rs. 48.