In this article let us analyze the technical aspects of the top 10 India stocks which have been either very strongly bought or sold this month. As usual, the discussion is restricted to ‘A’ group or ‘B1’ group stocks of the Bombay Stock Exchange (BSE).
List of top 10 gainers:
| Scrip | % Gain |
| SGFL | 118.42 |
| EVINIX | 91.98 |
| KOTHARIPRO | 81.88 |
| AKRUTI | 67.07 |
| NECLIFE | 66.02 |
| ZEENEWS | 58.11 |
| GOLDTECH | 51.74 |
| AXIS-IT&T | 48.98 |
| SUNILHITEC | 43.39 |
| IBREALEST | 42.94 |
Shree Ganesh Forgings Limited (SGFL):
Price data is available at NSE from May 22, 2007. However it is being traded at BSE since August 2005. We shall analyze both weekly and daily charts.
It fell from a high of 83.5 in September 2005 to a low of 25.70 in July 2006. It closed above the resistance trendline in second week of October 2006. Once this happens, some investors enter the stock anticipating further uptrend. But there is a risk in this type of trade entry. As can be seen from the chart, the stock fell continuously and even broke its support at previous low during the last week of March 2007. Once support is broken, more sellers should come in. But what about those who bought the stock above the resistance trendline? The bulls responded with non stop vertical rally. This rise, will be used to exit the stock.
http://groups.google.com/group/theindiastreet/web/SGFL_Weekly.JPG
(Chart courtesy: BSE Web site, www.bseindia.com)
In daily chart, after the resistance at 33.65 was broken on July 3 the stock has seen very little downside volatility. Note the number of one priced doji’s i.e. open, high, low and close are all same. This indicates that the stock had opened and closed at the highest possible price for the day.
http://groups.google.com/group/theindiastreet/web/SGFL_Daily.JPG
(Chart courtesy: BSE Web site, www.bseindia.com)
Evenix Accessories Limited:
http://groups.google.com/group/theindiastreet/web/EVINIX.JPG
We have seen in “Chart patterns and market’s reaction” about bullish and bearish patterns. The “flag” pattern is a bullish continuation pattern that can last upto 12 weeks. The debate is still on about the duration, though. Firstly, a “pole” needs to be formed; this consists of a rapid sharp move with heavy volumes. Then a flag, or small rectangle pattern is formed against the previous uptrend. Once the stock breaks above the resistance trendline, again a sharp upmove occurs. The stock had all the way gone up from 85.60 to 163.65 without a single correction.
Kothari Products Limited:
Weekly chart suggests that it closed above its previous high of 647.95 almost after a year; it had been consolidating so far.
Akruti Nirman Limited & Axis IT & T:
These are cases of bear trap. We discussed about Akruti Nirman in my previous article “BSE India launches New Real Estate Index”
Nectar Life Sciences Limited, Zee News, Goldstone Technologies, Sunil Hitec and Indiabulls Real Estate broke their previous highs on July 13, July 18, June 28, July 11, June 25 respectively.
The following table gives the top 10 losers for this month:
| Scrip | % Loss |
| AARVEEDEN | 22.48 |
| KMSUGAR | 21.40 |
| TIPSINDLTD | 21.36 |
| HTMTGLOBAL | 21.33 |
| DECOLIGHT | 20.45 |
| AARTIIND | 19.73 |
| POLARIS | 19.48 |
| IGS | 19.43 |
| ZENSARTECH | 18.49 |
| MALWACOTT | 18.46 |
We have discussed about Aarvee Denim, Igate Global Soluitons and Zensar Technologies in my earlier articles.
K M Sugar Mills Limited:
http://groups.google.com/group/theindiastreet/web/KMSUGAR.JPG
(Chart courtesy: BSE Web site, www.bseindia.com)
The weekly chart of KM Sugar Mills shows the bearish trend in the stock. It has fallen from a high of 106 in December 2005 to a low of 18.9 this week. It has not been able to break resistances; instead, it keeps breaking supports. Sugar stocks have been hit worst in the last 18 months.
Tips Industries, HTMT Global, Decolight Ceramics, Aarti Industries and Polaris are bearish in daily charts. Malwa Cotton, a case of bear trap, gained about 29% last month. But it is struggling to find some solid support.
Sundaramurthy Vadivelu
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