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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
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  • Analysis: NIFTYBEES 0 comments
    Dec 24, 2012 2:14 AM | about stocks: EPI, INP

    Today's pick is NIFTYBEES - the ETF that tracks the Nifty 50 Index. After an initial up-trend at the start of this year that lasted till the end of February, the index saw 40-point correction in May. After testing the support at Rs. 480, the ETF got back on its horse and has been trending upwards ever since. The ETF just experienced its 52-week high at Rs. 600 a week ago. In the last three months, the scrip is up 6%.

    (click to enlarge)

    Oscillators RSI and CMO are in no man's land suggesting no particular direction for the ETF.

    The MACD line and the signal line are moving close to each other - indicating a lack of any particular direction. However, both long-term and short-term GMMA lines are well spread, giving a bullish sign for the ETF. Also, the 4x9 technical gave a bullish signal for the ETF last week.

    (click to enlarge)

    NIFTYBEES has a historical volatility in the range of 0.2 to 0.35. The scrip's volatility currently is in the lowest of the range.

    To conclude, given these technicals, NIFTYBEES is a short-term BUY. Following the current trend in progress, the scrip is also a long term BUY with a resistance level close to Rs. 600.

    The article first appeared on Your

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

    Stocks: EPI, INP
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