StockViz.Abhishek's  Instablog

Send Message
Abhishek Preetam has an MBA in Finance and started his career as a big-data specialist working at Janalakshmi Social Services. Abhishek is a firm believer in technical analysis and a systematic approach to investing. He develops algorithms and automated portfolio management systems that crunch... More
My company:
  • Analysis: STER (SLT) 0 comments
    Dec 10, 2012 12:49 AM | about stocks: VEDL

    Today's pick is STER (SLT). After an initial uptrend in Feb this year, the stock deflated through June and settled in a range-bound side-ways motion ever since its merger with SESAGOA was approved. However, it just saw a very iffy breakout of the resistance level (Rs. 115) in the last trading session. In the last three months, the stock moved 14% against 13% rise of Nifty's.

    Oscillators RSI and CMO are at currently at 68 and 55 - in over-bought territory.

    The MACD line is showing a sign of pull back accompanied with the stagnation of the histogram levels, a sign of imminent bearish move for the scrip.

    A long-term prediction cannot be made given that the long-term (red) GMMA lines are moving very close to each other. However, the short-term lines (blue) are experiencing a pullback, suggesting a short-term bearish move.

    STER's average correlation of 0.72 with the Nifty is positive and quite strong. The stock will be replicating the movements of Nifty pretty closely.

    STER has a historical volatility in the range of 0.3 to 0.8. The scrip's volatility is currently in the middle of the range, and is not a cause of concern for the traders.

    Looking at these technicals the stock is short-term SELL. Over the longer-term, we suggest a HOLD for now, with a keen eye trained towards the Rs. 115 resistance level.

    This article first appeared on Your Money@StockViz

    Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

    Stocks: VEDL
Back To StockViz.Abhishek's Instablog HomePage »

Instablogs are blogs which are instantly set up and networked within the Seeking Alpha community. Instablog posts are not selected, edited or screened by Seeking Alpha editors, in contrast to contributors' articles.

Comments (0)
Track new comments
Be the first to comment
Full index of posts »
Latest Followers

Latest Comments

Most Commented
  1. Analysis: MTNL (MTE) ( Comments)
Instablogs are Seeking Alpha's free blogging platform customized for finance, with instant set up and exposure to millions of readers interested in the financial markets. Publish your own instablog in minutes.