Hexaware Positional

Hi,

Today Hexaware broke its trend channel and the waves look complete. A heavy downfall might be the case but lets not jump into that conclusion just now. As per the houtly charts some amount of correction is due for Hexaware and a slight profit booking should be looked at an area to get in. Here is the chart of Hexaware –

hexaware

Supports – 248,230

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Reliance Technical Analysis 28-02-15

Hi,

Reliance has been in a consolidation after the major decline in 2007. The stock tried to break out in 2014 but failed. This is a plan to benefit from the range bound price action as Reliance is now at the lower zone of the consolidation.

From June it started a downtrend and diverged from the Nifty as shown below –

reliance

The RSI reading is 40.78 and it could be a point of support.

According to the bollinger bands it shows a convergence with the 13 period and the 34 period lower band at 825, This could act as the short term support.

reliance bollinger band

If we go into the hourly chart of Reliance I have marked the support zones as well as the expected resistances.

reliance Hourly

The first resistance 890- is the fibonacci clustering of retracements from the previous two pivot points.

The second resistance 920 – has been taken from the Bollinger Bands Upper Band of both the 13 & 34 periods.

The Price currently is at the upper part of the retracement channel drawn and there should be some pullback which could then lead to the price target of 880 – 890. If however the price does not take support from the lower channel , then prices can reach 831-825. Currently the bias is positive for the short term until the lower channel is not broken.

Canara Bank Hourly 23-02-15

Hi,

If you look at the hourly chart of Canara Bank, there is a consolidation pattern forming and based on today’s session Bank Nifty and Nifty look to be in the sell mode. Bank Nifty may have also started the wave C decline.

canbk

The trendline has not been confirmed , so it will be interesting to see if the trendline will hold. If so there could be another leg remaining after which we should look for a b-d trendline breach and sell at the low of the b leg which stands at 398.

Tata Motors – Hourly 23.02.15

Hi,

Lets look at the hourly chart of Tata Motors

tatamotors

It looks like we can expect a decline in prices from 580 to levels of 530, the previous decline was 5 moves down and current rally is only corrective in nature. This suggests that the rally was part of the b wave of an a-b-c decline. Expecting a fast move down.

UPDATE –

The trendline is broken and prices were seen falling today,

Target 1 -544

RCOM – 19th February

Hi,

Have been monitoring this stock for quite some time and this stock is consistently declining on every occasion after giving many false buying signals. However this time could it be the end of the decline and start of a new uptrend ?

For a confirmed uptrend the prices should first need to cross 84.

Currently trading at 70.65, it is at an important junction and I would like to share the chart with you.

rcom

We saw the prices cross the 61.8% retracement levels but was unable to close below it in the hourly right upto the 5 minute time frame. This could be a useful support going and ahead and if the uptrend is to start this level of 70 should remain untouched although the prices can go down upto 66.55. Rest only time will tell and markets will tell us about the further action.

Update –

So Rcom today closed below 70 our stop loss is hit although this was a very protective stop loss as I had already written the prices could go down upto 66.55 and I will still remain bullish. Today the prices took support at the 78.6% retracement and if the downtrend line is not broken it could go below 66.55 where heavier selling will be expected. Although if it breaks the trendline we could look at buying options again.

rcom