MRPL - a technical report!

Analysis by CA Rajiv D Khatlawala
Author of "How to profit from technical analysis a beginner's guide"
Published by Vision Books www.visionbooksindia.com

Technical Evaluation of MRPL as of Feb 12 2008 (Closing price 81)

The MRPL stock which was in a rising trend since end-Oct 2007, touched a high of 149 in early Jan 08. It consolidated a lot between 140 and 120 and subsequently a break below the support level of 120/- gave early signal of weakness.
In the post Jan 21 fall, the scrip is currently testing its 200 DMA placed at Rs 80/-
The scrip is currently in negative territory based on RSI and MACD (shown on the chart) as also based on the longer term RSI (not shown). The scrip has crucial support at Rs 70/- and a break below this level will indicate further weakness.

On the upper side, the longer term RSI along with other advanced indicators (not shown here) are likely to signal a ‘buy’ on price breaking the Rs Rs. 93/-, after which the scrip should test Rs 122 levels.

Currently it is better to take a shorter term view on the stock with upside target around Rs 122 until a clearer trend emerges.

Current recommendation

Current investors may hold with a stop loss at Rs 70/-

Based on above analysis, a fresh entry can be contemplated only on a break above Rs 93 with a stop loss at Rs 73 for a minimum target of Rs 122 and then Rs 128/-.

*** Investors / traders wanting technical reports of scrips of their choice can email us at pushpdin123@hotmail.com . Cost per scrip Rs 400/- . You may also subscribe on monthly basis for 10 scrips of your choice along with 5 scrips recommended by us. The monthly subscription is Rs 3000/-. ***

CA Rajiv D Khatlawala
Pushpdin Portfolio Advisors

Does SBI have a 'rounding top' reversal signal?

Analysis by : CA Rajiv D Khatlawala
(Author: "How to profit from technical analysis- a beginner's guide" published by Vision Books www.visionbooksindia.com)

Is SBI giving a 'rounding top' reversal signals ??

Consider the daily Chart of SBI the banking sector leader

SBI has been one of the few stocks which was not heavily affected by the recent turmoil . where many other stocks lost more than half their peak values .
This led me to further evaluate the stock in detail for considering an entry. But the price pattern which emerged made me have second thoughts

1. If you observe the chart there is a clear rounding pattern emerging. The pattern which started mid Oct 2007 made higher highs in the Nov-Dec rally but the newer highs were not significant as is usually the case with rounding tops... Thereafter it made a lower high which strengthens the pattern further.

2. You will also observe that the volumes have been falling as prices were rising.

3. Usually, a typicality of the pattern is that pries tend to move towards the 'starting point' of the rounding pattern (see marking on the chart).
(Readers may further read in detail about the rounding pattern in my book "How to profit from technical analysis - a beginner's guide" )

4. The rounding pattern will now be negated only if prices break the resistance level of Rs 2450/-

Readers may want to track the stock based on this analysis ( or further analysis of their own)

Your feedback is welcome

CA Rajiv D Khatlawala