Shardul Kulkarni, senior technical analyst, Angel Broking has provided views on 3 stocks which were buzzing on Tuesday, Nov. 20, 2012. The same are as under:
United Spirits gained today after British spirits company Diageo Plc commenced an open offer to acquire a 26% stake in the company for Rs 1,440 a share. The tendering period commences on Jan. 13, 2013 and will run until Jan. 18, 2013.
Undoubtedly, 2012 belongs to 'United Spirits', as the stock has appreciated by nearly 257% till now, comparing last year's closing. It has picked up a strong upward momentum since July 2012. On the technical front, the stock has given a breakout from the ‘Downward Sloping Trend Line’ during this month, post the 'Diageo - United Spirits stake deal'. It soared by nearly 35% in merely 3 - 4 trading sessions post announcement and posted the '52 -week high' of 1,954. Since then, it has slipped into a consolidation mode, which is quiet evident after a humongous rally. Considering all higher degree charts, we are of the opinion that any dip towards 1,600 - 1,450 should be used as a buying opportunity by the investors. A fresh up move can be seen if the stock breaks its recent high of 1,954 after a considerable correction or consolidation. With a broader perspective, we have a bullish view on the stock.
Shares of the company gained Rs 9.4, or 0.54%, to settle at Rs 1,762.20. The total volume of shares traded was 596,625 at the BSE.
Reliance Capital, a financial services arm of Anil Dhirubhai Ambani Group, climbed today after media reports quoted that the company has begun talks to sell 26% equity in its general insurance arm to a foreign partner, and is open to selling further stake in life insurance and mutual fund units.
The stock rallied sharply from its recent bottom of 315 to register a recent high of 473. Immediately after this, the stock experienced a consolidation for nearly 12 - 15 trading sessions. However, after breaking the near term support of 436, the prices took a nosedive and corrected by nearly 15% in five consecutive trading sessions. At this juncture, it's hovering around the 61.8% Fibonacci Retracement level of the rise from 315 to 473. Hence, it is considered as a decent support zone. A sustainable move below 371 may trigger short term pessimism in the stock and as a result, we may witness a correction in prices to test 78.6% Retracement level placed at ' 349. However, considering broader perspective, the 'Higher Top Higher Bottom' formation in weekly chart is intact. Hence, traders can create fresh long position if they observe a ‘Higher Top Higher Bottom’ formation on daily chart as well. At present, our view is neutral on the stock and we would like to mention the short term trading range of 370 -' 413.
Shares of the company gained Rs 0.05, or 0.01%, to settle at Rs 376. The total volume of shares traded was 929,013 at the BSE.
Dabur India- Sell below Rs 123
The daily chart depicts a price structure which resembles a ‘Head & Shoulder’ continuation pattern. This pattern has a bearish implication and needs a confirmation in the form of closing below the neck-line support level. Hence, the breakdown would be confirmed only below 123 level. In addition, we are witnessing a negative crossover in weekly '3 & 8 EMA' as well as in 'RSI-Smoothened' oscillator. The impact of these technical evidences would be seen once the stock trades below 123 level. Thus, we advise traders to Sell the stock only below Rs 123 for a target of Rs 115 in coming 3 - 5 trading sessions.
Shares of the company declined Rs 1.2, or 0.96%, to settle at Rs 123.65. The total volume of shares traded was 34,850 at the BSE.
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