Technical Analysis on Request: Reliance Ltd

From last few days Reliance is a buzz on every investors mouth because the long moving averages have made a bullish crossover. The stock has given a Golden Crossover (bullish cross) which is basically a powerful crossover and well trusted one.

  

Normally, a stock with golden crossover is expected to be a multi-bagger stock. the short term resistances are 1020/1050/1100/1150. The supports are  920/850 and other multiple supports

  

Technical Analysis on Request: RCom

After a short correction, making a high of 160. The stock had shown negative divergence and started correcting. Thus forming a Flag pattern. In another perspective we can even see  Descending Triangle. It is clear that the stock has given bullish breakout in both Flag and Descending Triangle.

The Technical Indicator MACD say a different story: It is about to give a bearish cross-over. RSI had touched overbought level and now at a neutral zone.

The price recently gave a breakout in 200 day moving average and was not able to sustain the trend and started correcting.
 
Strategy: As MACD is a Moving Average based indicator and it is worth trading the pattern. currently the support is at 110 and resistance is at 160. Let the correction happen if MACD give a bearish crossover we can wait till 110 and if the stock don't show any reversal and continue to be bearish it is not a worth buy. If it show a reversal and give a conformation by crossing 200 DMA. It is on a bull run. 

Idea Cellular: continuation of downtrend (Technical Analysis on request)

For a few days from now the Idea  Cellular was making a bearish divergence on RSI and today it has given a downside breakout. which will lead the stock price to 125 or 101 within next few months. Here in the picture below we can see that the stock has given a downside breakout for the divergence

The possible supports for Idea

When we see at larger picture of Idea cellular we  can see that the stock has given a breakout(Downside/ Bearish) and failed to regain the bullish trend. Thus leading the stock into downtrend. Most of all major moving average namely 50DMA, 100DMA, 200DMA have given a negative crossover which is now making this stock a unfavorable piece of stock.  

Trading Sintex Ind's Ascending Triangle

As per the observation the stock had performed well in market. From last September 2013, now the stock is giving clear indication of a continuation and the stock price is expected to move up to 43/52 which are the next potential resistance.

The RSI is above 70 and making a bearish divergence thus forming the stock as a risky trade and can be advised to traders with quick entry and exit strategy. 

How to play with FMCG this year?

Since the news of Stake rise by Anglo-Dutch company Unileaver  PLC is ready to pump some +19K crores which is roughly around 67%. The FMCG market had a hard time; slowdown, high cost, profit margin, rupee depreciation, had affected almost all FMCG stocks. We have seen a consolidation of HUL stock from last June-July even FMCG stock have seen consolidation from September 2013.

FMCG CNX Analysis

 Currently CNX FMCG is just below 200DMA and trend-line is standing as a support. There is a possibility we may see a reversal. Stake rise is not only a problem with HUL, many foreign companies are rising stake in major FMCG companies like Pepsico, GSK and few  in other subsidiaries. It was basically a result of 

SEBI’s and RBI’s change of rules in minimum public shareholdings.

FMCG CNX had formed a Symmetrical triangle now; It had not given any directional breakout.

Analysis on HUL

The Stake rise news had created a fluctuation thus forming a Descending Triangle pattern, which had also given a negative breakout.  Along with it we are also seeing a divergence now, and forming a reversal pattern.

The stock is not an attractive stocks for analyst and many find ITC to be a good bet, as the P/E & Earning for FY15(Expected) to be good comparatively good. Both RSI as well as MACD has shown some divergence.

I am not a pharmabull. But, I want to play it technically. Buy if HUL give a positive breakout. I see this stock to be bullish and the stock is expected to move up to 680/725, if it fails to give any breakout the stock find its support at 484/434. 

Best financial documentaries to watch in your MBA

The documentaries/films below are by personal collection and are available on \\Swagat (Intra-college network available only for Bapuji B-schools students ). They are basically the documentaries seen by me on recommendation by fellow friends, well-wishers and few browsing over internet .

The documentaries are as follows

·         Inside Jobs: A wonderful documentary on financial crisis 2007-9. The documentary is divided into 5 parts and a very informative documentary concentrating on every aspect of 2007-9 crises. The documentary throw light on

·         The Ascent of Money: This an Ultimate finance film by a Harvard professor Niall Ferguson's. The film not only speaks on bubble but on all aspects of money, starting from the ancient money to e-money. The film was shown on History Channel in 6 frequent episodes.

·         Too Big to Fail: This was the film that I found digging Dr.Garag’s treasure on swagat(Intra-college network available only for Bapuji B-schools students ). An wonderful film on Leman Brothers collapse. It discuss on minute by minute details of Leman’s fall.

·        






 Rogue Trader: A film on Baring Banks collapse. It show how  Nick Leeson made  unapproved financial transactions. The film is a dramatic form of a documentary 25 Million Pounds.

·         25 Million Pounds: The best film to watch; not only for Finance students but for Human Resource. It speak very fine details of  Nick Leeson dobby accounts and fake transcripts.

·         The Midas Formula:  The documentary is by BBC and an details film on  Black–Scholes formula. Black Scholes is an option pricing model, The Ascent of money have a specific episode on Black Scholes and its failure. Black Scholes model is yet to be discussed in next year of Risk Management (VTU).

·         Million Dollar Traders: the film is on Rookie Traders in financial crises of 2007-9 Lex van Dam.  Lex van Dam is a turtle and is been trained by Richard Dennis. A wonderful film if you want to in invest/ trade in stock market. The film is basically based to showcase every aspect what it takes to be a trader.

·         FIAT EMPIRE - Why the Federal Reserve Violates the U.S. Constitution: finding time to watch. for more details click here

Dewan Housing Taps Debt- ECB Market

Dewan Housing Finance Corporation Limited has come up with an exciting issue of Perpetual NCDs in the Private Placement.

DHFL is amongst the few housing finance companies dedicated to provide housing finance to Lower and Middle Income (LMI) segment of the society. Presently it is the Second Largest Housing Finance Company in the private sector with an integrated network of 140 branches, catering to Semi-Urban and Rural belts of India.

Most of the branches of DHFL  are in the areas where neither the private sector banks nor large HFCs are present, thereby effectively eliminating the Rate Led Competition.

This advantageous position of DHFL enables it to exploit the huge growth opportunity arising from low cost housing segment viz-a-viz other industry players.

DHFL enjoys an AUM of over 24000 Crs. With a net NPA being 0% . Unlike other players, DHFL‘s branch staff interacts directly with potential customers thereby assessing their requirements and then design the solution. This unique marketing feature helps them avoid potential defaulters.

Housing loans sanctioned during the nine months ended 31^st December 2012 amounted to Rs. 3922.13 Crs. As against Rs. 3189.53 Crs. During the previous corresponding period showing an increase of 23%. Disbursements during the same period amounted to Rs. 2893.32 Crs. As against Rs. 2279.78 Crs. During the previous corresponding period showing an increaseof 31%.

In December 2010, DHFL acquired M/s Deutsche Post Bank Home Finance Ltd, having a home loan portfolio of approx. 4800 Crs. And was enjoying a AA+ credit rating.

DHFL as a company has a credit rating of AAA

Here are the issue features: Issue closes on 30^th September 2013

Issuer	Dewan Housing Finance Corporation Limited.
Instrument	Rated, Listed, Perpetual NCDs
Issuance Mode	Dematerialized Form
Credit Rating	"BWR AA+" by BRICKWORKS and "CARE AA-" by CARE
Issue Price	10,00,000 /-
Minimum Application Size	30,00,000 /-
Listing	On the WDM segment of N.S.E.
Coupon Rate	Monthly	Quarterly	Annually
	12.05%	12.18%	12.75%
Annualized Yield	Monthly	Quarterly	Annually
	12.74%	12.75%	12.75%
Call Option	To be exercised by the issue At the end of 10th year whether to redeem the NCD or step -up the interest rate
Step - Up in interest	Monthly	Quarterly	Annually
	220 bps	225 bps	250 bps
Issue Closing Date	Issue closes on Monday i.e. 30th September 2013

Mentioned below is the financial snapshot:

STANDALONE ANNUAL PERFORMANCE

PARTICULARS	31-Mar-11	31-Mar-12	31-Mar-13
Share Capital	104.43	116.84	128.22
Net Worth	1548.43	2032.72	3237.09
Total Income	1451.24	2469.68	4140.35
PBDIT	1274.32	2192.14	3738.49
Profit Before Tax	341.48	398.41	610.68
Profit After Tax	265.13	306.41	451.85
PBDIT(%)	87.81	88.76	90.29

STANDALONE PERFORMANCE FOR THE FIRST QUARTER

PARTICULARS	30-Jun-12	30-Jun-13
Total Income	738.82	1126.64
PBDIT	661.33	999.31
Profit before Tax	104.63	159.03
Profit after Tax	77.83	120.3