Technical Analysis of Indian Equities by Nooresh

Stocks on Radar – Unichem Labs, TV Today , AIA Engineering , Shemaroo , KEI Inds, Triveni Engineering , Exide Inds

21:30 – 01/11/2016

The last couple of months there has been a crazy momentum in microcaps/smallcaps. Smallcap Indices on NSE/BSE hit a new 52 week high today.

The blog posts have reduced as no major action in larger liquid names as have been busy trading momentum in microcap/smallcaps and prefer not to mention those names on a public forum as they can be risky too Smile

Some stocks on Radar.

Disclosure – No Personal Exposure yet and not recommended in any of our services. But may do so if and when breakouts take place selectively.

Unichem Labs – A nice cup and handle pattern with a breakout point at 320.

Unichem Labs

TV Today --- 290-350 range for a year now.

TV Today

Triveni Engineering – Triangle Consolidation. Can it breakout above 63-65

Triveni Engg

Shemaroo --- 360-370 a stiff resistance.

Shemaroo

KEI Inds -- 125-130 a resistance for more than a year.

KEI Inds

Exide Inds – 205-215 a resistance. Can it breakout in the future with some more consolidation here ?

Exide Inds

AIA Engineering – 1350 a resistance for a year plus.

AIA Engineering a

 

Some Market Thoughts

  • Lot of microcaps which used to trade 1000-2000 shares are jumping up 50-80% quickly with large volumes and it will seem as easy money if you are trading with small part of your portfolio but remember the way these stocks move easily on the upside it can be at same speed on the way down with hardly any volumes.
  • Recently tweeted this - If you have an #exit plan and #riskmanagement the momentum in #smallcaps you have to #ride. If no such #plan just #hide and stay #aside.
  • There is no harm in trading momentum and I really welcome such momentum as a trader but at the same time it is scary given such large moves are followed by sharp corrections in stocks too.
  • Simply put – Do not leverage in current overheated conditions and be strict with stoplosses. Keeping some cash or increasing cash is also a good idea.

 

Nooresh Merani

Securities covered above:: Unichem Labs, TV Today , AIA Engineering , Shemaroo , KEI Inds, Triveni Engineering , Exide Inds

SEBI Registration disclosure – Investment Adviser ( INA000002991)

Financial Interest:

Nooresh Merani and his family/associates/ analysts do not have exposure in the securities mentioned in the above report/article.

Nooresh Merani and his family/associates/ analysts do not have any financial interest/beneficial ownership of more than 1% in the company covered by Analyst.

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The views expressed are based solely on information available publicly and believed to be true. Investors are advised to independently evaluate the market conditions/risks involved before making any investment decision

Article by Nooresh Merani

Nooresh has written 2577 articles.

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