Sunday, October 28, 2012

Oil India Ltd

                                                                Oil India daily chart (click on chart to zoom)

On daily chart, stock is forming narrowing wedge pattern which is a bullish pattern if stock breaks out of wedge that's above the upper trend line (blue line). Stock is trading above all its key moving averages which also adds weight to the break out. As shown in the chart there rounding bottom formations indicating buy on dips by smart traders or investors on at lower price. Stock didn't participate in recent bull run so expectation is that it should now move up.
Stock can be bought at CMP (489 as on 26 oct 2012) for the short term target of 520-530.
Stop loss at 470-475 recommended.

Wednesday, October 24, 2012

Hindustan Unilever Ltd

                                                                HUL weekly chart (click on chart to zoom)

HUL on daily chart is moving up since last couple of weeks. On its recent uptrend the stock is forming rising triangular pattern. This triangle is an indication that smart traders/investors are selling the stock on every rise or in other words shares are getting transferred from strong hands to weak hands. Rising triangular pattern is therefore a bearish pattern. Stock can be sold at CMP (570 as on 23 oct 12) for target of 550-540.
Stop loss should be kept at 585-590.

Bank of India

                                                                BOI daily chart (click on chart to zoom)
 
 BOI is in down trend since last two years making lower lows on daily chart. Stock is trading below its key moving averages like 20, 100 and 200 but above 50 DMA. Stock is making narrowing triangular pattern which may break on either side. Stock if breaks down can be shorted with stop loss at 307 and for target of 282.
CMP - 298 as on 23 oct 12