NIFTY Technical Analysis: Where is indian stock market headed?

Sell Exide Industries: Recommends InvestorZclub

Exide Industries Q2 FY 2011 - 2012 result disappointed street and the stock corrected more than 7% immediately after the result was announced today. The company's Q2 net profit was down 71% at Rs 61 crore versus Rs 212 crore YoY. However the revenues were up 4% at Rs 1,176 crore versus Rs 1,127 crore, YoY. The OPM was at 7.7% versus 22% and the total expenditure was up at Rs 1,100 crore versus Rs 902 crore, YoY.

The stock witnessed knee jerk reaction and fell below it crucial support zone of 125 to 130 (As shown in the chart below).

Free Technical Analysis of Indian Stock Market - Software / Online

For all budding Technical Analysts and Chartists there is always a question on where to do real time technical analysis on Indian stocks and that too without incurring any cost. Many people end up buying expensive softwares which promise lot of advanced automatic analysis and recommendations but practically speaking no such software is ever built that will give you sure shot recommendations. Its upto the analyst to arrive at conclusion based on the evident patterns.

The world's biggest and most successful chartists still prefer to do technical analysis on paper. But now a days with advanced software technologies lot of time can be saved if charts and patterns are plotted using computers. Now why pay for charting softwares when you can perform fairly high level of technical analysis online and that to absolutely free.

Following are some of my preferred places where you can perform free technical analysis of Indian Markets and Stocks online.

Bharti Airtel Technical Analysis

Infosys Technologies Technical Analysis - 2011

Learn Technical Analysis from the experts

CNBC-TV18’s show ‘The Informed Investor’ invited two of the world's famous Technical Analysts Yamada & Roth to explain what technical analysis is and how to use them? Must read and watch for any investor or trader aspiring to learn technical analysis.

Watch the full video of the interview here. 

The transcript of the conversation is given below: 

Buy Bharti Airtel with an immediate target of 400

Bharti airtel seems to have broken out of a tough resistance of 360 and has managed to stay above this level in last few trading sessions. On 14th April the counter witnessed high volume of close to 8 million shares with unusually high delivery percentage of 74% which suggests that strong hands were buying stock in the cash segment. Based on options data for Bharti Airtel, it was seen that 380 call has seen a cut of 12% in open interest while the call of 400 has registered an addition of 40% in open interest, which suggest that the bias has shifted towards

Polaris software - Insiders accumulating

Polaris softwares has been witnessing unusually high volumes with upward price movement since last few days. On 4th Feb it went up 10% when the overall market was up only 1%. Then on 5th Feb it went up more than 2% when the overall market was down more than 2% and that too on a volume thrice as large as it witnessed the previous day with total number of shares traded close to 5 Million shares (around 5% of the company's equity).

Polaris usually declares an interim dividend in the first fortnight of February. This time it is expected to declare an interim dividend of Rs. 2.00 to 2.25 per share. But there seems to something else beside dividend which insiders knows but we are yet to know. If the cash and cash eqivalent of Rs. 508 crores is some kind of indication then following events might occur:

1. BUYBACK - The company is trading at a very low valuation of less than 8 times forward year earnings. Considering the attractively low valuation that company trades at and huge cash surplus that the company has, there is a reasonable probaility of a buyback announcement to part utilize the idle cash reserve and boost the investor's sentiment in the company.

2. Special Dividend - In terms of cash per share the company has approximately Rs 50/- Per share, more than 25% of the current market price of Rs 190/-. To reward the existing shareholder and boost investors confidence in the comapany a special dividend cannot be ruled out.

3. Bonus - In such a depressed market condition and lower valuation that company is trading at, a bonus issue is also a possibility to lift the investors confidence in the company.

It is to be noted that above events are just a possibility and might not occur. The above scenarious are built based on the high trading interest witnessed in the stock in last few trading seesions.