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Friday, March 28, 2014

Stocks in the news this week (Mar 28, ‘14)

With Sensex and Nifty touching new highs on a daily basis, the last of the bears may be throwing in the towel – as can be seen from a host of stocks breaking out of long downtrends or consolidation zones.

Even stocks of realty companies are beginning to show signs of life after being shunned by investors. Charts of a couple of them are given below.

When stock indices start moving higher daily, many small investors suddenly realise they are ‘missing the bus’ and jump in feet first. The smart thing to do would be to wait for a correction and then enter.

These are not recommendations to buy or sell. Please do your due diligence before taking any decision.

Ambuja Cement

AmbujaCem_Mar2814

Infrastructure stocks have been out of favour for a while now, and Ambuja Cements has been no exception. The stock had been trading sideways with a downward bias, but appears to have formed a bottom at 150. The recent price spurt after a period of sideways consolidation was on news of a court decision permitting amalgamation with parent company Holcim.

ROC, RSI and Slow stochastic are showing negative divergences by failing to touch new highs. MACD is in overbought zone. A correction may follow.

Godrej Properties

GodrejProp_Mar2814

After a long bear phase, the stock price of Godrej Properties was making a ‘rounding bottom’ bullish pattern. The final volume spurt that caused a break out above the falling 200 day EMA was due to announcement of new residential projects at Pune and Chennai.

All four technical indicators are looking overbought. Expect a correction or consolidation.

Oberoi Realty

OberoiRealty_Mar2814

The stock of Oberoi Realty was struggling to get out of a bear market. A high volume price spurt above its 200 day EMA was caused by news of acquisition of a large land parcel in Borivali from the Tatas.

Oberoi was a debt-free realty company – a rarity. But it will now be saddled with a large debt for the land purchase. Remember that it will take a couple years for the company to monetise the land by building and selling residential flats.

Talwalkars

Talwalkar_Mar2814

The stock price of Talwalkars has been struggling to get back into bull territory for the past 6 months. The high volume rise to a new high was on news of a likely stake sale.

2 comments:

Unknown said...

What about Unitech? Can it start monetizing the land under possession by completing different projects? Heard that it is having large volume of land;..what,s about the prospect of the Share?

Subhankar said...

There is a Bengali proverb: "Don't be so small that a goat can eat you up; don't become too big because a storm will topple you."

Unitech tried to become too big too soon. Same problem with Suzlon. Don't go anywhere near such companies.