Accordingly I have evaluated the stock :
DishTV which touched a high above Rs 105 in Jan this year has since retraced to Rs 50 levels.
Recently there was a volume spurt when the stock price rose from Rs 56 to Rs 65 in a single day (marked on the chart). Thereafter it has corrected back to near Rs 52 levels.
Consider Rs 50.50 as an important support level in the ongoing correction.
A break out now above Rs 58 should trigger partial entry in the stock and one can add more if the stock rises above 62.50 . Keep stoploss at Rs 51 after the entry in the trade. A break out with higher volumes will be more confirmatory.
Target on the upper side should be Rs 80-83/-.
Though the Nifty / Sensex has closed weak ... One can expect upward bais in select mid cap stocks.
Happy trading!
CA Rajiv D Khatlawala
7 comments:
If this moves up to 58 then it will form Inverse H&S pattern, right!
That is why it as breakout targets from here.
yes ...
Hi!
Your call on Reliance energy shows perfect timing. it went to 1560-70 levels and is back to 1320 odd. What do you recommend now?
Subbu
I have been holding this stock from the 100 odd levels and recently averaged it out with the average price of 78. Could you pls advice if I can hold this stock for the long term say 1 year more and what target should one foresee. I have 2500 shares.
Pls do advice as I am in huge loss.
Dear Neil
The current move and volumes in the stock suggests that it is bottoming out.
I would suggest watching the indicated levels and the targets for taking any investment / dis-investment decision
Would please request all readers to avoid seeking specific advice.
You may however ask about the basic technical formations on various charts.
Thanks
CA Rajiv
Rajiv,
How did you arrive at
"Consider Rs 50.50 as an important support level in the ongoing correction. "
I am unable to understand the rationale for it on chart?
Dear Man4urheart....
Did you see the low made by DishTV ? at Rs 50.70 !! near the indicated level of Rs 50.50/- !
The calculation is not being revealed - for the time being!
Happy observing !
CA Rajiv
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