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StockViz.Abhishek
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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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  • Is TATASTEEL A Steal?

    We last took a look at TATASTEEL in October last year. We were waiting for a decisive breakout above the (down) trend-line before getting bullish on the stock. It made a 52 week low of Rs. 320 last Friday.

    Technical chart of TATASTEEL

    As you can see from the chart, the stock has tested the Rs. 320 levels twice before since 2009 and has bounced back each time. From a valuation point of view, it is trading at a PE of ~8 which is on par with its global peers like US Steel and Arcelor Mittal. Plus, the Tatas have been giving a Rs. 12 per share dividend since 2011. However, the global outlook for the metal is bearish, with European steel demand being down by 30%, and the industry remains highly fragmented.

    So the question is will TATASTEEL be a good buy at today's levels? The RSI indicator is at neutral and MACD is bearish. So from a technical point of view, it is a short-term sell. From a long-term perspective, it is trading at valuations that might be a good entry point for investors who can stomach volatility. If the stock closes above Rs. 320 levels today, it is a long-term buy from our point of view.

    This article originally appeared on StockViz

    Tags: Steel
    Mar 25 3:55 AM | Link | Comment!
  • Analysis: INFY

    Today's pick is INFY (NYSE:INFY). The stock has been very volatile for most part of the last year. It started the year with a range bound movement between Rs.2,800 and Rs.2,900 and saw a bearish breakdown in April. The stock then fell to Rs. 2,200 levels. After spending 8 months between Rs. 2,200 and Rs. 2,600 the stock broke past the channel in January, to move towards its 52 weeks high of Rs. 3,000 levels. In the last three months, the stock moved +25% vs. a flat Nifty.

    (click to enlarge)

    Oscillator RSI and CMO are currently in no-man's land. The stock is currently trading in the middle of the Bollinger bands. Short-term technical just saw a 18X9 and 9X4 bearish cross-over.

    The MACD line has bearishly penetrated the signal line, and the histogram levels are dropping to confirm the bearish move. However, the Long-term GMMA lines have been expanding as opposed to the contracting short-term lines. This is adding to the in-decisiveness about the direction of stock move.

    (click to enlarge)

    INFY's average correlation with the Nifty is 0.50, which is positive. The scrip will be replicating movement of Nifty.

    (click to enlarge)

    INFY has a historical volatility in the narrow range of 0.2 to 0.7. The scrip's volatility is currently in the lower end of the range.

    (Source: Reuters)

    Analysts have a bullish outlook for the stock, the next set of earnings might make a difference in the stocks outlook.

    Given the technicals, we suggest a short-term Hold. A long-term hold is also suggested if the stock holds above Rs. 2,600. Also, it is advisable to have a relaxed trailing stop-losses level to book profits in case of a sudden trend-reversal.

    This article first appeared on Your Money@StockViz.biz.

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

    Mar 18 1:20 AM | Link | Comment!
  • Analysis: ICICIBANK (IBN)

    Today's pick is ICICIBANK (NYSE:IBN). The stock started the year with a downward move to reach Rs. 800 levels. After finding support for a couple of weeks the stock started its up-ward movement. It saw the 52 weeks high of Rs. 1,210 in February, but since then was on a down-trend to find support on the trend-line. In the last three months, the stock moved +2% same as that of the Nifty's.

    (click to enlarge)

    Oscillator RSI and CMO are in no man's land. The stock is currently trading in the upper side of Bollinger bands. Short-term technical just saw 4X9 and 4X18 bullish SMA cross-over.

    The MACD line has just penetrated the signal line in a bullish manner. However, the Long-term and short-term GMMA lines are contracting, unable to provide any outlook for the stock.

    (click to enlarge)

    ICICIBANK's average correlation with the Nifty is 0.82 which is positive and very strong. The scrip will be closely replicating movement of Nifty.

    (click to enlarge)

    ICICIBANK has a historical volatility in the range of 0.3 to 0.8. The scrip's volatility is currently in the lower end of the range.

    (Reuters)

    Analysts have positive expectations regarding this stock. Less than expected earnings might hit the street expectations in the coming reviews and might impact the stock as well.

    Given these technicals, we suggest a short-term Hold. A long-term call could be taken depending on the price action around Rs. 1,200 levels. It is also suggested to have tight trailing stop-losses level to book profits in case of a sudden trend-reversal.

    This article first appeared on Your Money@StockViz.biz.

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

    Mar 11 12:48 AM | Link | Comment!
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