SENSEX INVERTED HEAD AND SHOULDERS PATTERN :
The chart is explanatory enough.
The very first time we looked into this pattern was http://nooreshtech.blogspot.com/2009/07/what-do-you-wanna-see-see-what-market.html
Although until now not giving importance to the pattern has given good results as the other observations gave exact direction.
Theoretical Observations and Inferences :
1) Shoulder size is roughly 2.5k-3k points. This gives a minimum target price of 18k-18.6k which is most probably achievable over the next 4-8 weeks. ( I am betting on this :P )
2) Head size is very huge at 7.5k odd which gives a target of 23k. This is possible over the next 6-9 months or a little more. ( Wishful Thinkin :P )
3) The Pattern gets negated if the index closes below 15k levels for more than 8-10 sessions.
4) Volume Analysis still doesnot point heavily towards strength in the pattern. So a confirmation on volumes needs to be seen over the next 1-2 months to increase the probability of highest target.
5) Crossing over 17500 with volumes or a sustained closing above 18900 would be confirmatory signals for 23k target.
Above are technical observations. But we always go with the trend and also look into many factors and confirmatory signals alongwith practical market analysis to take a final call. For now the trend remains bullish and a move to 18-18.6k over the next 4-8 weeks remains open till it doesnt close below 15500.
About The Company
Gati Limited is a pioneer and leader in the Express Distribution and Supply Chain Solutions in India. It was the revolutionary approach adopted by Gati that helped launch many path-breaking initiatives in the logistics segment and many were the firsts for the Indian market. In a span of 20 years, Gati has consistently explored various ways to bring premium value to the customer, always setting benchmarks in quality of service and customer satisfaction.
Having started as a cargo management company in 1989, Gati has grown into an organization with more than 3500 employees and a turnover of Rs 576 Crore covering 603 out of 611 districts in India.Gati has over 4000 vehicles on road,fleet of refrigerated trucks,container vessels and world class mechantronic warehousing facilities across India.Be it flexible point-to-point distribution solutions or complex end-to-end integrated logistics solutions or supply chain management, Gati does it all with great effectiveness and reliability, and enjoys the trust of a large customer base.
About The Financial Results
The company has posted results for the first quarter ended 30th September 2009, the company has managed to turnaround. As against a loss in June quarter, the company has posted a net profit of Rs.2.27 crore, up from net profit of Rs.47 lakhs posted in first quarter of previous year.
The most impressive part about its performance has been the improvement in the OPM – it was up at 12.81% as against 5.97% in Q1 of previous year. NPM on a YoY was up from 0.27% to 1.32%.
This was mainly on account of internal restructuring which helped rein in the cost – it was down 87% of net revenue compared to 94% in Q1 of previous year. What also helped was the pick up in business. Air freight which was the main depressor last few quarters has finally come out of the woods.
Its coast-to-coast shipping business posted a revenue of Rs.148.87 crore on which its EBIT was at Rs.20.13 crore. Express distribution and supply chain (EDSC) posted a revenue of Rs.21.10 crore but on an EBIT level, it remained in the red, with a loss of Rs.75 lakhs. But the company has stated that its shipments have picked up since the last 2-3 months. Its three ships were in dry docks and that added to the woe.
The company has divested 11% stake for consideration of $20 million to Singapore-based Tifoi. Another $20 million was raised through convertible warranties to promoters. It has written off all its losses and its reserves as at 30th September 2009 stands at Rs.253.85 crore.
During the previous year, the company was constrained to discontinue the freighter business and terminated the arrangement with National Aviation Company of India Ltd (NACIL) resulting in Arbitral dispute and NACIL invoked the Bank Guarantee of Rs.30 crore. This is one case which continues to be fought and one risk which has to be factored in.
For the current year, it expects to post a revenue of around Rs.800 crore compared to Rs.630.33 crore in previous year. It hopes to end the year with an EBIDTA margin of almost 14%.
NIFTY - now may attack our TARGET ie. 5320 & 5467
(now trailing stop @ below 4900 closing basis)
nifty futures closed well above my power buy levels which is @ 5042.73 , closed @ 5055.2
making bears one more sleepless night today
MACD Crossed zeroline in today eod of nifty , one more bad news for bears
For more clear view click on charts to see:-
left chart eod , right chart for 17.11 levels
nifty futures closed well above my power buy levels which is @ 5042.73 , closed @ 5055.2
making bears one more sleepless night today
MACD Crossed zeroline in today eod of nifty , one more bad news for bears
For more clear view click on charts to see:-
left chart eod , right chart for 17.11 levels
- Torrent Power pulls back on lighter volume to close just above its line of support @ 319.70
- Stock offers a good opportunity to open and keep a long position at this price level as long as it stays above its line of support
Torrent Power Daily Chart - Friday, November 13, 2009
Torrent Power Weekly Chart - Friday, November 13, 2009
Torrent Power was first profiled and recommended on Sensex Charts on Tuesday, May 12, 2009: Torrent Power: A Rare High, Tight Flag Pattern?
52 Week High: 350.90 (November 09, 2009)
52 Week Low: 63.60 (November 20, 2008)
Nifty :: Once again bullish breakout candle without volume..!! As per our last US Dollar post no technical works at current level, once again dollar slide and all word market move up.. Be careful at higher level, today dollar touch 74.70 level near to our Elliott wave target.. Please stay away from currant up move.. Or if you want to buy, buy only in intraday with strictly stop loss.. For further up move strength Nifty required to close above 5104 with volume.. For 17th Nov. watch one level 5045, above 5045 momentum seems up, below 5045 down.. Our strategy for 17th up to 5128 sell at high (S.L 5128) buy in deep (S.L 5017).. Resistance for up move at 5082/5104/5128/5152/ 5180.. Supports at 5017/4994/4978… 
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