NTPC poised for a move.

Recommendation :

NTPC is poised at interesting juncture.

Buy : at around 190~2%.

Stop : 176~2%.

Target : 215.

Allocation : 15%.

Logic of Trade : NTPC is showing huge divergence with 15 days RSI and 12,26 MACD. Also it is very close to moving above its 50 days ema. which would be
the buy confirmation. If price goes above 50 EMA and price stays above 50 EMA that would be great sign of positive move upward.

Caution : Markets right now are non-directional. There is no trend, and it is hard to trade
in such times. if overall market weakens, I dont see this trade materializing.

Holding period : I would recommend to hold for 2 weeks if neither stop nor target is hit.

Track this recommendation below.

Hexaware-Analysis request

One of the readers of this blog , "prince geo" requested to know How to trade hexaware.
(If you have any analysis request, put them down on the comments section or on the side bar where I mentioned, "did I miss anything".)

Please have a look at the chart and see a downward channel pattern forming. This indicates that price movements is occurring between a particular std.deviation of the mean price. If this is complex, price moves in a range. That range is not flat and its downward.

Now , if hexaware to make move from here, It should break 80 levels with strong volume support. If that doesn't happen, It will continue to move between the top and bottom line of the range shown in chart.

Please not that there are other factors which affect price and these views are strictly from technicals.


Also, if you look at the weekly charts below, you would see that there is a quite a bit of divergence between price and MFI(see price being stable, MFI increasing) This means that there is high likelihood that price go up from here.In other words, money is flowing into this stock rather then getting out of the stock.To get more information around MFI - Price divergence , I recommend to read about it at stock charts.