Hot Stock Pick and Trading Strategy for 26/07/2010 (July 26, 2010): Sell Hindustan Petroleum
July 25, 2010 by admin
Filed under Analyst's Corner, General
Hot Share Pick and Trading Strategy for 26/07/2010 (July 26, 2010): Sell Hindustan Petroleum
On the Daily Charts, HINDPETRO has shown weakness on Friday, when it breached its 20-Days EMA (Exponential Moving Average) of 440.41, by making a low of 431.15, with a spurt in volume. Company’s quarterly results announced on Saturday, gave a hint of a downfall to be witnessed on Monday in this stock. Stock’s 50-Days SMA (Simple Moving Average) is quoting at 394.37.
The 14-Days RSI (Relative Strength Index) is still quoting at 52.22 on the Daily Charts (RSI below 50 indicates weakness or confirms the Selling signal).
The Positive Directional Index (21.89) is below the Negative Directional Index (23.04), ADX (Average Directional Index) is quoting at 29.44 on the Daily Charts. ADX’s value above 20 and near 40 indicates that the underlying trend is strengthening.
Hence, it is recommended to sell HINDPETRO only if it trades below 430 for the Targets of 424 & 420, with the Strict Stop Loss of 436.
Contributed By: Sonal Natani MS(Finance), ICFAI, Hyderabad.
