Month: August 2017

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The Strength of a Flat Base, A Super Growth Stock Pattern

In the earlier weekly special articles, we have seen various types of chart patterns that can appear on data graphs. In this week we will focus on a particular chart pattern that is a simple consolidation to understand, yet has a hidden strength in it.

In a cup-with-handle or double bottom, the success of the breakout depends on the way a stock rises and falls within the base. A third pattern shows that a stock can choose to take neither path before its big move north. Rather than approaching an uptrend or downtrend, the stock moves sideways for weeks or months. This action is known as the flat base.

Continue reading “The Strength of a Flat Base, A Super Growth Stock Pattern”

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Weekly Big Picture – Market Inches Higher Amid Volatility

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MARKET PULSE

Status: Uptrend Under Pressure

Highlights:

Three up days, one down day

Weekly Market Review

The benchmark Indices started the four day trading week at a loss of 0.84%. Frontline Indices traded in a range bound fashion with the Nifty managing to hold the 9,850 mark. Markets were volatile for most of the days in this week. However, as the week progressed, both the Sensex and the Nifty managed to accumulate and take the overall gains for the week to 0.23% and 0.20%, respectively. Continue reading “Weekly Big Picture – Market Inches Higher Amid Volatility”

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Infosys: Why Timing Your Exit is Crucial?

Simple sell rules can save your day

Vishal Sikka’s shocking exit from the position of CEO and MD of Infosys dealt a severe blow to the Company’s market value. Following the news, Infosys’ shares dropped 14.4% over two trading sessions, wiping off almost INR 34,000 crore from investors’ wealth.

Before Sikka took over the charge in 2014, Infosys was reeling under pressure due to poor growth and high attrition. Market participants were expecting Sikka to turn things around at Infosys and he was successful to a large extent.

Infosys’ revenues and earnings grew at 23% and 16% y/y, respectively, in Q4 FY 2016, the fastest pace in two years. Further, the stock broke into new highs in April 2016 after a long period of consolidation. Continue reading “Infosys: Why Timing Your Exit is Crucial?”