HINDZINC
HINDZINC, a Vedanta Group company, is the market leader in zinc, lead and sulphuric acid business. The company is India’s only and the world’s largest integrated producer of Zinc-Lead. It is also one of the leading Silver producers in the world. It is one of the lowest cost producers in the world and are well placed to serve the growing demand of Asian countries.
Points of Observation
- HINDZINC had been an outperformer in the past few weeks. The stock had been consolidation in the range of 135-145 levels in the weak market conditions. The benchmark index Nifty ended with steep losses of more than 6% till date in the current month, on the other hand, HINDZINC ended with marginal loss of 1%.
- The stock gave a consolidation breakout in the month of May 2014 and made a 52 week high of 190.50 levels in February 2015. Later, the stock entered in to pricewise correction which dragged the counter again to the breakout levels of 135-140.
- At current levels, the stock is expected to re-gain its bullish momentum and move towards the 52 week high levels of 188-190 levels in medium term perspective. In the recent scenario, the stock witnessed good trading volumes from the support levels of 135 and entered in to the cluster of short to medium term moving averages.
- We recommend medium- to long-term investors to buy the stocks at current levels and accumulate more on any dips towards 135 levels with stop loss placed below 120 levels.
LLOYDELENG
LLOYDELENG is in uptrend from many months and every correction has proved to be a great buying opportunity. The stock has made a high of 329 and from that point it has come to 226 levels giving a correction of almost 30% from its high. On daily charts the stock is trading above its 200DEMA which is at 232. The stock has major support levels in the range of 220-227.The stock made a low of 226 on January 18 and since then it is consolidating in a range of 226-250. The next major weekly support is around 220 levels which are also around its previous breakout levels. The current correction seems to be almost over and the stock is likely to consolidate near its support levels and start its up-move in next few days.
Points of Observation
- On the daily charts, the stock is trading above its 200 day exponential moving average, and has taken support at its major daily and weekly support levels which are placed in the range of 220-227. The stock has been witnessing accumulation from the last 4-6 trading sessions near its support levels with decent volumes.
- Among oscillators, the 14-period RSI on daily charts has recovered from its oversold zone and is currently sustaining above 30 levels, indicating the correction in almost over and the stock can once again move northward in coming days.
- On weekly charts the stock is making higher high and higher lows and has taken support of its previous breakout levels of 220 and the same levels also coincides with its 50 period EMA and it is highly likely that it will continue in its uptrend.
- The stock is trading near its long term upward sloping trend-line which is likely to act as a very strong support zone and unless the trend-line is broken the long-term trend for stock is likely to continue.
Bajaj Finserv
The monthly chart structure of this fundamentally strong stock, suggests formation of cycles of higher highs and higher lows, supported by stellar volumes at higher levels, clearly indicating there is a lot of demand for the stock even at higher levels which is a positive sign in itself. Bajaj Finserv is in a structural uptrend and looks well set to march steadily towards the 2,500-2,700 mark over the next 9-12 months. The stock has been relentlessly rallying from its December, 2008 low of 86.83 to a recent lifetime high of 2,160, which was clocked on August 3, 2015. The stock also broke out above its previous resistance at 1,000 in August, 2014. In the chart above, it is clearly seen that the stock also witnessed superb accumulation within a broad range of 1,600-1,800 during second half of 2016. Considering the fact that the stock has zoomed more than threefold within a period of just more than two years, we feel that the stock can actually put up a similar performance over the next year as well.
Points of Observation
- On the daily charts, the stock is trading above all its major moving averages, indicating the bullishness in the counter and any dip towards the moving averages can be used as buying opportunity.
- The stock has seen fresh accumulation in last couple session indicated with steep rise in price along with the increase in the volumes. The stock has immediate strong support paced at 1550 levels and the uptrend is expected to continue in the stock till its stays above the 1350 levels.
- Among oscillators, the 14-month RSI line is trading in the overbought territory from a very long time and any dip can be used for fresh accumulation.
- We therefore recommend long term investors to go long in the stock on dips to 1,850, and average the long position on dips, if any, around the level of 1,550 for the mentioned target levels with a strict stop loss placed below the level of 1,350 on a weekly closing basis.
Emami
Emami Limited is one of the leading personal and healthcare businesses in India, with a product portfolio of household brand names such as BoroPlus, Navratna Oil, Fair and Handsome, Zandu Balm, Kesh King, She Comfort, Mentho plus Balm and Fast Relief. The company has operations in more than 60 countries. Over 112 Emami products are sold around the world. The stock price has seen a stellar rally from the levels of sub-70 to the levels of sub-1365 in a span of seven years giving a whopping move of more than 1900%, which depicts its long term structural uptrend. After clocking the highs of 1350 in August, the stock has corrected its rally to the lows of 900 in November, where these lows also coincides with the 50% retracement of the previous major rally of 430 in May 2014 to 1365 in August 2015, indicating its medium to long term up trend is still intact. After hitting the lows of 900, over last few weeks, the stock is consolidating in a broad range of 940-1040, indicating a possible pause for next up move. Going forward, until the stock holds above 880-900 levels, it has the potential to rally towards its major previous swing highs zone of 1070-1080 and above it towards another swing highs zone of 1160-1200 in the coming months.
Points of Observation
- The stock on weekly chart has been respecting its medium term moving averages and bouncing back with decent volume activity, indicating strong hands are playing in the counter.
- Among oscillators on weekly charts, the 14-period RSI line is trading at a reading of 45, indicating the stock has more upside and any dip can be used for fresh accumulation.
- We therefore recommend medium to long term investors with a time frame of four to six months to buy the stock in the range of 985-995, and average on dips towards 930 for the mentioned target levels with a strict stop loss placed below the level of 870.
IGL
IGL is in uptrend from many months and every correction has proved to be a great buying opportunity. The stock has made a high of 608 and from that point it has come to 539 levels giving a correction of almost 10% from its high. The stock is trading above its 200DEMA and 50 DEMA which are at 439 and 467 respectively. The stock has major support levels in the range of 535-540.The stock made a low of 539 on 19th January and showed smart recovery from those levels and is currently trading around 570 levels. The next major monthly support is around 518 levels which are also around its previous breakout levels. The current correction seems to be almost over and the stock is likely to consolidate near its support levels and start its up-move in next few days.
Points of Observation
- On the daily charts, the stock is making higher high and a higher low even in turbulent market conditions indicating the inherent strength in the counter and is likely to head northward towards its previous high in short term.
- The stock has been witnessing accumulation from the last 4-6 trading sessions near its support levels with decent volumes. The stock has a strong support at around 535-540 levels and is likely to head towards 680 levels, if a breakout above 610 is sustained.
- Among oscillators, the 14-period RSI on daily charts is sustaining above 50 levels, indicating the stock has strength and price can rise in medium term.
- On weekly charts the stock has taken support of its previous breakout levels of 539, and it is highly likely that it will continue in its uptrend.
- The 14-period RSI on weekly charts is still sustaining above 70 levels, which very clearly indicates that the momentum is still intact and the stock still has strength for next round of up-moves in coming days.