ASI - A Weekly report with a difference

Weekending 11th of January 2019, the Market PE dipped to 9.51 against 9.67 in the previous week. The PBV dropped to 1.16 times from 1.18 of the previous week. However the Number of Trades increased to 14,211. It was 13,427 in the previous week. If you break the trades number down you will see that both domestic and foreign participation edged up at the close of this week. The number of Domestic trades nudged up marginally from 13,427 in the previous week to 13,575 this week, whilst the foreign side climbed from 367 trades to 636 trades during the week. While this has been the Trading overview of the ASI, let's look at the mostly traded Counters during the week vis a vis the previous week.

There had been 32 counters that saw over 100 trades in the week ending 4th of Jan 2019, which had increased to 35 by the close of this week. Out of these counters 18 had seen trades over 100 in both weeks. Breaking it down further you would see that there are 4 counters that had seen trades over 300 during these 2 weeks, with JINS seen only 293 trades this week, but had 727 trades during the last week, hence included into the over 300 club. The 4 counters that are in the 300 club are as follows:

                                        Previous Week                      This Week
JINS                                       727                                      293
SAMP                                    429                                     1267
AAIC                                   1048                                      356
HUNA                                   516                                       803

There is no point questioning the pros and cons as to why these 4 counters were specially treated in terms of Trades, but worth having a look at their price action which could help us to Enter or Exit them.

JINS - Presently trying to defend 30.00. If a consolidation is to take place it needs to strongly support 27.90 which is the 9 EMA. If the bulls want to really succeed then 1st the present downtrend line needs to be broken and head over 33.50. If we do not see the 33.50 is defeated then unfortunately the bullish expectations will not realise. If they succeed then a target of 38.00 can be expected. The Traders can certainly enter based on the present price behaviour. As long as you are prepared to stop loss at 27.90, you can go ahead to collect between 29.00 and 30.00.

SAMP - Zone between 210.00 and 224 had been a long consolidation in 2016, which lasted for a whopping 23 weeks. We have now come to that zone again after hitting a high of 319.50. This is not for traders. But for long term investors it will be a sure counter to collect on weakness.

AAIC - During the last week of 2018 we saw the counter breaking out of the 2011 high of 40.50. This must be defended for the prices to move higher. On the 1st week of 2019 AAIC hit a new high of 47.50. Obviously this must be broken out if we want to see newer highs. Hence a consolidation above 40.50 is a must. Therefore you have to keep a stop at 40.50 if you want to trade at the present price levels. For those who would want to be on the defensive, wait to see if the prices would retrace to 40.50.

HUNA - This is a no brainer now, as the stock will definitely hit 187.00 as there will be a mandatory offer at this price. No right thinking shareholder will ever sell the share below 187 in this background. Mondays trading pattern will certainly help the traders. If you can grab it below on Monday the 14th Jan 2019, you must certainly do. Good Luck.

Let's check the rest of the interesting counters later.