Browsing: Indian Stocks Trading

When Tata Tea reached the 430 level a few days back, it was clearly time to buy. Not only was the overall market in an oversold condition, this particular stock had reached a 123.6% Fibonacci projection of its previous large decline. From the 430 area, we have already seen over 30% gain, and it is natural to start wondering where we will run into some profit taking.

Every few days we will look at an emerging market stock. Dr. Reddy’s Laboratory has suddenly come to the limelight today. You will observe from the chart that this stock has been trading between two parallel lines for several days. Only once did it violate the lower line, but it closed higher

The Indian Central Bank has cut rates, and Reliance looks well bid. Should we buy Reliance here? My response is No. We will see another dip in this stock and let us look at it again at that time. If you have purchased this stock when it was around 1000, then you should look to get out on this rally

Can India be immune to what is happening elsewhere in the world? The answer is a resounding no. Last week the benchmark index or the “Sensitive Index of the Bombay Stock Exchange” crashed to 10,239. This level is about 2,000 points below my target for the index (I had written that we will see 12,200 when the index was above 21,000 earlier this year)