Share Tips for 27th August, 2010 (27/08/2010): Sell Adani Enterprises
August 27, 2010 by admin
Filed under Analyst's Corner, General
Share Tips for 27th August, 2010 (27/08/2010): Sell Adani Enterprises
On the Daily Charts, ADANIENT has formed a Long Black Candlestick, with a good spurt in volume. The prices breached the important support of 642 and made a low of 627.40 for the day.
Now the next important support for the stock comes at the level of 625, which if breached will give a good hammering to the stock. Stock’s 50-Days SMA (Simple Moving Average) and 20-Days EMA (Exponential Moving Average) are quoting at 576.92 & 623.44, respectively.
The 14-Days RSI (Relative Strength Index) is quoting at 57.36 on the Charts (RSI below 50 indicates weakness or confirms the Selling signal). The Positive Directional Index (29.90) is still above the Negative Directional Index (12.81), ADX (Average Directional Index) has gained strength and is quoting at 53.40 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 ADANIENT only if it trades below 625 for the Targets of 613 & 610, with the strict Stop Loss of 635.
Contributed By: Sonal Natani MS(Finance), ICFAI, Hyderabad.
