Novartis India continued its good run as the stock jumped 8.3% on heavy volume. The stock has seen increased buying interest in August and has advanced about 40% from its pivot price of Rs 682.
Chart Of The Day – Aarti Industries Jumps 5.5% on Heavy Volume
Aarti Industries saw strong price action as the stock jumped 5.1% and retook its 21-day moving average in style. The stock snapped a three-session losing streak and closed 1.5% above its pivot price of Rs 1,360.
Besides Moving Averages Should We Use Trend Lines?
I would not recommend the use of trend lines except to track long-term trends over a period of months. Shorter-term trend lines can be very misleading. Often, by the time the shorter-term trend line (weeks or less) is established, it becomes obvious, and fails shortly thereafter. Moving averages are a better guide.
Chart Of The Day – Bharat Rasayan Hits Upper Circuit
Despite weakness in the benchmark indices, Bharat Rasayan hit the upper circuit with a 5% gain today. However, the stock is currently trading 17% above from its pivot price of Rs 6,599.00. The stock broke out of a nine-week long cup-with-handle base on July 9, 2018, but it was an eight-stage base. If you purchase a late-stage pattern (after third or fourth); its risk increases.
Chart Of The Day – Radico Khaitan Breaks Out Of Cup-With-Handle Base
Radico Khaitan got locked in upper circuit at 5% and managed to break out of a 13-week long cup with handle base. It is currently trading at 1% above its pivot price of Rs 454.40. As per the latest release by NSE, the stock continue to remain in the ASM. Despite break out, the earnings and revenue trajectory is not in favour of our investment thesis.
