for last five years Pharma stocks have been the darling of the market. So now we see what technically what it is indicating. Technically the the index appears to be indicating a toppish signal. if you notice the first fall it has been on very heavy volumes indicating the some major investors are not interested  and post that, the rise has been on good heavy volumes by till now it was not able to make a new high which is an indication that pharma index might have topped out and we might be reversing in coming weeks or months. Whether long term top has been made we have to see the individual stocks, it on seeing the technicals indicating the the up move might have been over. Pharma index seems to be in process of forming a topping head and shoulder pattern it appears to be in forming the final right candle and any breach of 12000 would confirm the same giving a target of 9000 so pharma up move seems to be waning.

Mahiidar M
Enjoying Life
Trend is Friend.

Darling of the investors over period of last two years Maruti Udyog limited. It has risen from around Rs.1000 levels to around Rs.4700 during last two to three years. The techncials are indicating that the up move might be maturing and it might turn down in coming weeks it has till a new high is made we can expect that the stock is headed down wards. It made a high of 4700 in august 2015 and then fell 4100 levels and then has risen again to 4700 levels, here the perfect technical top formation is indicated by volumes. the rise from 4100 to 4700 has highest volumes( highest in rise from 1000 to 4700) and this highest volumes have failed to take it upwards or a new high and sustain there which is a classical double top. The highest volumes suggest that the informed investors have got out of the stock in the last rise and they have now much interest in the stock. So now till 4700 is successfully taken out and sustained above it we can expect maruti might have topped out and we can expect it to to move towards 3800 and then 3200 levels will it go there? if 4700 is not taken out we can expect it to atleast correct it to 3800 but the best would be 3200. 

Mahiidar M
Enjoying Life
Trend is Friend.

Nifty seems to be heading lower considering the technicals.Nifty is below 200 day EMA and also SMA which is a bearish indication. This is the longest time after 2011 where nifty is below 200 EMA/SMA. It may also be seen that 200 EMA(black MA) is below 200 SMA(red MA) which is also a barish signal. nifty moved below 200 EMA by gap down in august and then made a low of 7550 and then reversed again to move above 200 EMA and found resistance at SMA and then moved down wards and that too today with gap down below 200 EMA which is also a bearish signal. All these are pointing technically that bulls are not going to have a good days in comming weeks or months. So till 200 day EMA/SMA are not taken out we can easily see nifty making new low.
Mahiidar M
Enjoying Life
Trend is Friend.

Granules:Rs.102

Granules has made an all time high after nearly 10 months of consolidation the break out is on huge volumes indicating that some informed buying has gone into the stock. it has taken Support exactly at 200 day EMA and then bounced generally above 200 day EMA bulls are active.Fundamentally the company has been working really good and the profitability has been continually increasing over last 10 years indicating that the rise is on strong and improving fundamentals. I wish to put stop loss at 200 day EMA as of now.

Mahiidar M
Enjoying Life
Trend is Friend.

Indian Oil Corporation:Rs.454

IOC has made all time high just now and notice the volumes on the break out move which is huge indicating that huge amount of informed buying has gone into the stock. Bulls seems to be active in the stock. I have kept a stop loss at Rs.375/-

Mahiidar M
Enjoying Life
Trend is Friend.

Weekly technical Analysis for week ended 20^th June 2015.

Nifty opened on slightly weak note then onwards it started to move up and was in continues uptrend for the last five days  and one noticing feature of the up move was that all the candles were green candles indicating that bulls are trying all means to take the market up. This week they did not give bears any chance to fight back. So can we consider that the down move is over and we can expect the market to make a new high? The answer appears to be no. it can become yes only when nifty move above 8500 in next two days which seems to be difficult. One positive thing for bulls which has happed on Friday was that nifty was able to move above 200 day EMA and sustain there for whole day we have to see whether market would be able to sustain above it for the whole week to indicate strength.

It can be seen from the above that nifty has been finding resistance at 50 day and 100 day EMA indicated by red arrows for the last three months and unless and otherwise both are taken out decisively we cannot say that the trend has reversed. Another point to be noted is that nifty is making lower lows and lower highs shown by black arrows. Till that is being maintained we can expect the market the market to drift down wards. 

Another point to be noted is that the re-tracement of the fall is taking longer time indicating that the bulls are not as strong as it appears to be that is the reason I have indicated earlier that we have to move past 8500 in next two days. So if we do-not move past that level in next two days we can easily expect the market to at-least test the bottom or move below it.  So still technical parameters are indicating that the market is in down trend and has all chances of continuing the trend in coming weeks. So be cautious with the current up move as it can reverse at any point of time.

Mahiidar M

Enjoying Life

Trend is Friend.

Point and figure chart is clearly indicating that central bank is in for a healthy fall. Central bank has broken the buying level at around 102 levels. This clearly indicates that central bank has entered a selling area and we can expect a healthy fall in the stock atleast 20 to 30% from current levels till 102 is not conquered.
So better watch out