On the Daily Charts CANBK has made a White Opening Marubozu Candlestick, with a good spurt in volume, thus proving the strength in the stock lying within.

The stock opened above its 20-Days EMA (Exponential Moving Average) of 421.87 and made a high of 431.90 for the day. 50-Days SMA (Simple Moving Average) is quoting at 417.65. Hence, a positive crossover is observed between the two averages.

The 14-Days RSI (Relative Strength Index) is quoting at 56.99 on the Charts (RSI below 50 indicates weakness or confirms the Selling signal).

The Positive Directional Index (19.01) is still below the Negative Directional Index (20.30), ADX (Average Directional Index) has gained strength on the Intraday charts and is quoting at 10.26 on the Daily Charts. ADX’s value above 20 and near 40 indicates that the underlying trend is strengthening.

Hence, it is recommended to buy CANBK only if it trades above 432 for the Targets of 435 & 436, with the Stop Loss of 430.

Contributed By: Sonal Natani MS(Finance), ICFAI, Hyderabad.

On the Daily Charts, IDEA is now bottoming out. Yesterday it crossed its 20-Days EMA (Exponential Moving Average) of 54.44 with a good spurt in volume.

Prices made a White Candlestick too, to prove the strength lying within. Stock’s 50-Days SMA (Simple Moving Average) is quoting at 59.86. In the coming days, if stock crosses this level, it will be very strong and will touch new highs.

The 14-Days RSI (Relative Strength Index) has given a BUY Signal on the intraday charts and is quoting at 49.59 on the Daily Charts (RSI below 50 indicates weakness or confirms the Selling signal).

The Positive Directional Index (25.84) has crossed the Negative Directional Index (21.63), ADX (Average Directional Index) has gained strength on intraday charts and is quoting at 15.39 on the Daily Charts. ADX’s value above 20 and near 40 indicates that the underlying trend is strengthening.

Hence, it is recommended to accumulate IDEA only above 55.50 for the Target of 59.50, with the Stop Loss of 54. The stock can still be accumulated above the given levels for long term (6-12 months period) for higher targets.

Contributed by Sonal Natani MS(Finance), ICFAI, Hyderabad.