Tata Steel (TISCO) : Showing strength
Posted by JV on May 16, 2008
Tata Steel (TISCO) is moving up smartly. The chart shows very good bullish sign. The price is very well above the 20 days EMA which is at 818. MACD shows sharp upward move with consistent and positive histogram. Chaikin Money Flow (CMF) shows strong continuous accumulation and which is leading Relative Strength Index (RSI) just a tick above 71 which is bullish indicator. Presently the chart of TISCO is showing a classic bullish chart with all positive indicators.
Price movement also shows great support around 800. Now as it is nearing 900 it is facing resistance and perhaps consolidate a bit, but is more likely that it may cross 900 level on next trading session as bulls has much more force than bears at this level.
May 17, 2008 at 12:45 pm
You are such a keen observer of the market. Kudos. Your comments on my blog always set me thinking…I hope I can pick up TA skills from you.
May 17, 2008 at 3:35 pm
Duh, “keen-observer” lol, Observer I am, but keen? perhaps unsure about it. I enjoy reading , and I read keenly about the subject I am interested in. And internet provides plethora of information and study material on TA.
May 17, 2008 at 7:41 pm
that’s true, the net is such a blessing. even in my illness, I found answers to all my questions without bothering another rude and ignorant physician
May 17, 2008 at 10:35 pm
JV — I shorted tisco four days back and just about managed to come out with 5 k losses. I was saved in part because the large trading range it has been having. I too see bullish movement and that is happening when everything is actually going against the steel industry. we have seen our government run havoc with sugar then cement and now steel.
How long this bull run will last ? anybody’s guess. though I am out of shorts and follow candles closely — it is just a time before as a sector it is dumped. It is just that the earthquake in china may have spruced its momentum. more than that — anybody’s call.
Cheema
May 18, 2008 at 10:45 am
As I have said above the chart is still showing bullish trend, and we have to wait for Tuesday to verify the trend. My conclusion is based on last three candles.
On 14th May the price movement showed biggest leap in recent days. On the next day, as it reached near 900, bears prevailed and brought the price at the level of 805 (at least on chart, perhaps nobody had seen that price level on screen, but still it has to be seen to consider the strength of bears), but the day ended in the tie showing indecisiveness of bulls and bears. But next bulls made clear about its strength and stood near the barricade of 900.
The last candle shows little resistance from bears, and perhaps bears will move to next resistance of 950.
May 22, 2008 at 10:13 pm
hi JV, Where do you see Nifty in medium term?
May 24, 2008 at 8:39 am
JV, What’s your view about Friday’s charts? Last 2-3 sessions have been -ve with no significant changes in volumes.
Can you tell me how ICICIBank looks to you? I had bought calls around the same level a few days ago and squared my calls when it shot to 930+, now I have re-entered. I have taken to trading this counter cause compared to Nifty options or Reliance options, the premium is very low.
May 24, 2008 at 8:47 am
By the way, I was looking at your photos, beautiful work. The kingfisher caught my eye particularly. When I came to Pune 15 yrs ago, I used to see this beautiful creature around my house a lot. Two open canals from Mutha river flowed near my house. Now it’s a rare sight. One of the canals has been closed (converted to pipeline) and one is open. The river is also nearby but there’s hardly any water and most of it is sewage. But when we go for walks by the canal one can catch sight of dozens of kingfishers. We call em NeelKanth in Marathi, I think it’s derived from Sanskrit. Another friend of mine is an avid wildlife photographer & trader. He has been published in some leading magazines and he has an options trading website EquityBonanza.com
Another piccy i LOVED - Tulsi flowers. Hmm…What did I tell ya about your observation skills?
May 24, 2008 at 8:53 am
You probably live in a beautiful house with a garden huh? Not a flat I’m sure! I hate living in a flat, tho we have a nice terrace with lots of potted plants.
May 24, 2008 at 7:29 pm
Uma, I hope you read my inconclusive views on NIFTY at your blog.
Chart of ICICI is also shows weak signs, I would say worse than NIFTY. ICICI has closed lower than previous low close of Rs.880-00 (20th May). It is interesting to observe that the last close is Rs. 862-05 paisa, just a tick above the intra day low of 862-00 of 20th May. It is hanging in thinnest thread
Another worrisome thing with ICICI chart is that, 20days EMA has never crossed (referring 3 months chart) above 50days EMA, wherein NIFTY it was crossed on 29th April which was bullish sign.
Rest of indicators, CMF, RSI, MACD are declining as well. Perhaps stop loss should be near around 850, subject to the market circumstances.
There is significant change in the quantum of points in NIFTY comparing to the previous step-wise-fall of 1st May onwards. Recent two falls have much strength.
In previous few days I have booked little part profits in TISCO and Suzlon and have parked the money in GOLD ETF.
Photography is just another hobby, I enjoy photography when my whims allow me
May 25, 2008 at 12:37 am
JV, the strange thing about ICICI options premiums: Stock closed 862, PA900 closed Rs 40! That’s ZERO premium! So market is expecting it to shoot?!
May 25, 2008 at 12:47 am
also, ICICIBank CA 860 option closed at Rs 20 so the calls are trading at a premium of Rs 18 and puts at almost zero premium (PA900 going for 40 bucks, with last traded price of 862!!) that’s clear evidence that market is expecting upside right?! that too when the chart is so bearish!
So what do you say to a straddle? PA 900 at Rs 40 and CA 900 just below Rs 5!!
June 1, 2008 at 3:28 am
looking forward to Reliance TA
have a great weekend!