TCS, HCL Technologies, Chambal Fertilizers, Maruti Suzuki

TCS, HCL Technologies, Chambal Fertilizers, Maruti Suzuki

Chambal Fertilizers - buy

Chambal Fertilizers - buy

Chambal Fertilizers

Chambal Fertilizers

Chambal Fertilisers and Chemicals

We recommend a ‘sell' in the stock of Chambal Fertilisers and Chemicals from a short-term trading perspective. The stock is in a medium-term correction from the peak of Rs 74.2 recorded on February 19. The counter-trend rally from March 16 low of Rs 57.1 halted on Tuesday and the sharp 3 per cent cut received in the last trading session has resulted in a evening star pattern in the daily candlestick chart that is a top reversal pattern. That the rally could retrace less than 61.8 per cent of the previous down-move also underlines the negative outlook for this stock for the near-term.

The 10-day rate of change oscillator reversed lower on Wednesday and is nearing the zero line in the bullish zone denoting sagging momentum. The relative strength index in the daily chart is also reversing lower in the bullish zone implying that the short-term uptrend could be over. The stock could decline to Rs 62.3 or Rs 61 in the upcoming sessions. Short-term traders can therefore sell the stock with the stop at Rs 65.

via BL

Chambal Fertilizers

Chambal Fertilizers

Chambal Fertilizers

Chambal Fertilizers

Chambal Fertilizers

Chambal Fertilizers

Chambal Fertilizers - SELL

We recommend a sell in Chambal Fertilisers and Chemicals from a short-term perspective. It is evident from the charts that this stock has been trending downwards since June high of Rs 96 (52-week high), forming lower peaks and lower bottoms. However, in early October, the stock found support at around Rs 32, which is a key long-term support level and began to trend up. This uptrend of the stock was a corrective up move and it encountered resistance at Rs 54. Subsequently, shaping a bearish engulfing candlestick pattern, the stock resumed its downtrend. On November 6, the stock tumbled over 8 per cent penetrating the corrective up trendline, reinforcing the bearishness. The daily relative strength index (RSI) is declining in the neutral region towards the bearish zone and the weekly RSI is featuring in the bearish zone. We are bearish on the counter from a short-term horizon. We anticipate the stock’s decline to continue until it hits our price target of Rs 38.5 in the forthcoming trading sessions. Traders with short-term perspective can sell the stock while maintaining a stop-loss at Rs 46.

via BL

Today's Pick - Chambal Fertilisers

We recommend a sell in Chambal Fertilisers & Chemicals from a short-term perspective. From the charts to the stock we note that it had been on a medium-term uptrend from its March 2008 low of Rs 41, till it encountered resistance at Rs 94 in mid June.

The reversal from Rs 94 level has been supported by negative divergence in the daily moving-average convergence and divergence (MACD).

Recently, the stock penetrated the 21-day moving average and the medium-term up trendline, signalling bearishness. The daily MACD has displayed negative divergence and is indicating a sell.

The other daily momentum indicators are declining in the neutral region towards the bearish zone. Our short-term forecast for the stock is negative. We anticipate the stock’s down move to continue until it hits our price target of Rs 66 in the upcoming trading sessions. Traders with short-term perspective can sell the stock while maintaining stop-loss at Rs 79.

Anand Rathi - Chambal Fertilizers, Zuari Industries

Chambal Fertilizers

Zuari Industries