Muses of Murari

Click on the charts to see in enlarged format.

Hindustan Unilever forming negative divergence on daily charts. Break below 403 – 406 band gives good trading opportunity.

LakshmiVilas Bank forming nice bullish WolfeWave. Target around 102.

Gujarat FluoroChemicals looks to break long term trendline giving an nice shorting opportunity.

Cairn India clearly failed to break 325 on upside. It may fall to the lower channel as shown in the above chart.

Axis Bank broke the support line (looks like HnS neckline).  More downside to see.

Share your comments on the charts and market.

CAUSE

BSE filing – 28th July 2011

EFFECT

Stock Performance starting same week (28th July).

Please note – Q1 FY12 results announced on the same day. And also the growth were already showing off in previous quarters and investors knew about it even before Q1 results.

One would think the dividend message is -ve and stock movement will be in reverse direction. On the contrary, the stock moved up stupendously from the same news event. This shows, how market can reward if the management is honest and forthcoming with actual position of the company.

Market is master!!

This is an excellent book.

Roughly, one could say, this book relates to the ‘Connect the Dots’ written by Rashmi Bansal. This book is written around a particular idea – innovation through toughest challenges. Author argues, if a company were to differentiate and lead the pack, it needs to set toughest challenges to itself and in the process embrace the sweeping changes, which may include complete business model makeover.

Based on this theme, author discusses 11 case studies and in each one how the toughest challenges are conquered and a trend setter in the respective Industries.

For example, the author writes inspiring story about Dr. Varaprasad Reddy of Shantha Biotechnics and how he set a massive goal to himself – to manufacture Hepatitis B vaccine and supply to people across the world at cheap prices. And how he sold each vaccine for nearly 1/13 of the price of then available popular Hepatitis vaccine in the market.

How Titan set an enormous challenge to itself to manufacture slimmest and water resistant watch and how it achieved without much fanfare.

And more.

This is must read book just to get the idea, world class products, world class ideas have come out of India. We don’t need to doubt ourselves any more!

click on the image to see it in enlarged format.

Gold formed life time close at MCX. Looking at Weekly chart, a possible -ve divergence scenario is building up!! Watch out!

click on the image to see it in enlarged format.

Update: The above chart looks like a typical breakout scenario. Unfortunately, the Kingfisher news pushed the price of this scrip nearly 9% down next day. Is it pump and dump story? Possible.

click on the image to see it in enlarged format.

USD-INR pair reached 50 today!!

Look at chart below (day chart). Awesome move in last three months. Note the slightly falling wedge pattern!

                 click on the image to see it in enlarged format.

Update: Looks like Island patterns are usually formed at tops and bottoms. I am wrong in my conclusion. I am learning!

Bullish Island reversal pattern on Nifty chart. Volumes are slightly supportive. Given the -ve / bearish sentiment across the participants, including myself, market can reverse and create shock and awe. So Nifty can break above 5170 and test 5325 (fill the gap). For the first time I am observing Island reversal in Nifty!!

Interesting days ahead!

CNX IT Index is forming bearish flag pattern.

Given that earnings coming out in next few days starting with IT major Infosys, this chart shows an interesting play out. Though INR is depreciating, which is good news for IT exporters, if the IT companies hedged dollar stream to a lower value, this opportunity may of no meaning to them.

Let’s watch how it plays out!

Check out the weekly charts for two stocks below and observe the price movement.
Page Industries sells Jockey apparels in India.

Lovable Lingerie

Rupa & Co, which sells inner garments & other things, listed yesterday.

Rupa blasted up in the initial hours and fizzled out at the end.

If stock price movement of Page Industries & Lovable Lingerie, is anything to go by, looks like market traders are very much in under garment business!!  If this is true, we may see some action Rupa & co in coming days.