We were constantly emailed if now was the right time to start buying stocks - on a technical level NO. Long term growth prospective as promised by our finance minister - YES
We analysed quite a few of the Blue Chips which held some major weight within the Indian Markets.
Our analysis is based on 5 major indicators which we choose before buying a script.
Stochastics & CCI , RSI , Bollinger Bands, 20 DMA Under the 10 & 5 DMA and our personal favorite Candlesticks.
We have been constantly watching
Reliance Industries take a beating -
We fail to understand how a
25057cr company has its stocked priced at Rs 754 and a smaller company like
VST Industries with a market cap of 18.53 cr has its stock priced at 1201.75 or
Balmer Lawrie which has a market cap of 10 Cr and stock priced at Rs 620. (CMP as on Aug 9, 2011)
If any of you Reliance guys are reading this and get lost somewhere please note all the three scripts have a face value of Rs 10.00
The stock has not yet generated any BUY signals - We expect the stock to be a safe buy at 740 levels. Stochastics indicate the stock stands oversold but many a times stochastics would stay well below 20 for a much longer time before an exact buy signal is triggered. From our 5 Indicators RIL gets a 0/5 . Slow stock piling could be initiated for long term growth.
Larsen Toubro is one of the most fascinating and promising stocks which has given investors very decent returns and lived upto its mark of investor satisfaction.
The stochastics stands at 19 and RSI at 31 the stock should be closely monitored and can be bought and sold on intraday levels. The stock has declared a decent quaterly profit and shall shoot up to 1900 levels if the market sustains an upward movement. Candlesticks have generate no BUY signals as of yet which we hope to get in the next few trading sessions.
BHEL - is one of my grandpas favorite stocks that he works with due to his in-depth knowledge of the stocks history and movements.
RSI is at 31 and Stochastics at 19. There is a huge gap between the 20, 10 & 5 DMA lines. We dont have a candlestick signal of a trend reversal.
Other stocks such as TCS, INFY , TATAMOTORS stand the same ground. If the market fails to sustain or recover from the current levels we could see 4700 pretty soon. The markets should recover a little from thursday or friday giving investors some peace of mind before they can enjoy the long Independence Day weekend.
The stocks are oversold and ready for a jump but when, could be anyone's guess - but we do expect our clock to show us the right time before we could take some healthy profits home.
