Sunday, January 12, 2014

SP SL 20 SHOULD PERFORM FOR THE ASI TO GO UP

 Most would agree with me, if I say that the stocks in the SP SL20 should go up for the ASI to move up.

Based on the various types of information majority expects the ASI to do well during 2014. Then there must be stocks that should take the lead to make it a reality. There are many stocks that may perform well in 2014, which will happen without a doubt. But most importantly, if many of the index heavy weights aren't contributing to this bullish trend, this expectation will not be a reality. In this context I strongly believe that, it is highly important to monitor the performance of the SP SL20 index, and the counters in the index, as to how best they are leading the rally.

The following table comprises of all the stocks in the SP SL20, along with the 2 indexes, namely the ASI and the SP SL20. Here I have taken only the points and the % for these, without prices or values, as they can be viewed separately through charts.

The time period is from 28th Nov'13 to 10th Jan'14. The reason is because the  present trend opened on the 28th Nov'13.


As you can see it had been DFCC that has given the highest return of 27.01%, during this period, as such I would like to give you the Chart of DFCC, and will be posting the rest of the charts, in the next few days.




Pe for DFCC is 8.06 times, while the sector pe is 8.9, and the price to book value is 1.11 times( Sector pbv is 1.4). If you look at this chart you could observe that the price is almost nearing the top of the 12 months. The highest was 153, on the 10th of May'13, and the close on the 10th of Jan'13 was 150. Looking at the RSI it is now at 86.8, and based on the Fibonacci Extentions from the high on the 10th May'13, 138.2% is around 166, and 161..8% is 174.9, on the down side the 61.8% is 139 to 140.  A break out to the top is a close above 153 with a strong volume. Break out from the bottom is a close below 145, which is acting like a pivot right now.

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