ASI today - 29.09.2017

ASI - Closed at 6442.71, that's a slight improvement of 9.17 points(.14%) over yesterday. Turnover was Rs. 782,344,640.00 below yesterday's value of Rs. 801,015,189. However the number of transactions  were higher recording at 7967 trades against  5,849 recorded yesterday. Amongst the S&P SL 20 Stocks the LONE PERFORMER was SAMPATH BANK PLC (LKR 310/=) with 124 transactions, and a turnover of Rs. 42,086,596.10, gaining 5.50 over yesterday's close.

The heavily traded shares were all retail favorites such as Lankem Developments Plc (663 Trades, +1/10. 11%), Malwatte valley Plantations Plc - Non Voting (637 Trades, +1/60, 18%), Lanka Cement Plc (611 Trades, +1/10, 20%), Malwatte Valley Plantation Plc (566 Trades, +1/20,12.9%) and Richard Peiris and Company Plc (258 Trades, +-/50, 3.82%).

Crossings (Block trades over LKR 20 mill) were witnessed on HNB (LKR 20,938,500/=), LION (LKR 110,081,250/=), and COMB ( LKR 65,561,160/=).

Going forward to the next week, which will be the beginning of October expectations are for the retail momentum to continue.  As the latter part of October starts the earnings of the 3rd Quarter, counters that are tipped to have performed well would draw a lot of volatile market activities.

COMB - Accumulation persists

COMB - The other heavy weight in the bourse is trending, thereby allowing the long term players to just pluck the fruits liberally. No trader would like what's going on here. As long as the counter is holding above 135, the momentum can be bullish.

JKH - Trending

JKH - The leading stock in the market is trending between 160 and 165. As long as it hold within this channel, expectations of an uptrend shouldn't be a problem. Yet it is somewhat frustrating, but that's how things are....

As can be seen the counter tried to break out of 165, and retraced, I do not want to lose hope of that indication of expecting a trend continuation.

Presently it is the Investors who are collecting as it appears, let's hope that the traders too will get an opportunity.

BIL - Wish it could hit higher

BIL - Rallied within 18 weeks from 1.20 to 3.50, a whopping 192%. Now it's history, but what happened then has not send the traders away from it just yet. The retracement brought it down to 2.90, exactly 23.6% on the fib retracement line. That is something to watch. Retracements tend to be longer than that, but if the trend is going to be in agreement with both the buyers and sellers, then this pause will be over and trend up to test 3.80 and 4.00. If that happens in a matter of days or weeks, it could be a decent return. I suggest to collect between 2.90 and 3.40, and, as it is now at 3.30 - 3.40 why not try some at that, and target 3.80 to 4.00 which could give you about a 14% return. But what I wonder is that the position traders who are accumulating big numbers would settle for as small a % as 14%.

RICH - Start Collecting

RICH - The rapid move from 9.80 to 13.40 within 6 days, made the trend to go into a cooling out retracement. This was a good and healthy development for it's trend continuation.

Time has now come to collect within a channel which I classify as the present support base between 11.40 to 12.00. Suggest a collection within this range. Thereafter I expect a rally to breakout of 13.40 and test newer highs upto 14.00 - 15.00. BUT THIS WILL HAPPEN WHEN DAILY VOLUMES ARE HIGHER THAN 1 MILLION SHARES. Presently it's trading with very thin volumes.

You must not over expose when you are collecting a position on this. If you think to buy 10,000 buy only 20% or 10% maximum. This way you are giving yourself room of either 5 or 10 stages at which you will collect the full number. If you see it's breaking out of 12.00 and you have not completed the collection of a fair number, that's ok, stick to the amount you bought and wait for your target. Target can be between 12.50 and 15.00. As such the exit strategy can be decided by you.

Do not ignore this opportunity......

Update!!! Plantations - Keep an eye, to collect again

26.09.2017 - Update

Trend only took a breather but not a retracement. Once again the closing is almost at the exact recent high and 100% fib extension of 1023 points. I am closely watching the reversal, let's see how it'll work. However some followed my suggestion of collecting during this breather. Which paid off.

PLT - became the favourite of the retailers since april of this year. There was a retracement in late june making a swing low. There after it rallied again to complete a 1 time trend extension on the 18th of September. This sector will now move into a retracement or have moved into a retracement already. This will bring it back to a range between 900 and 950 points, and expect a trend continuation to test 1020 to 1100 points. Watch and pick your favourite stock in this sector little by little for another move up.

KAPI - need to break out of 32.50

KAPI - Trend is fragile due to the dismal performance in the June quarter. As such the market will watch their profits. The present spike in trading should take it up above 32.50 and form a very strong support within 30-32.50 channel. else it could find support at the Mar 2016 low of 28.00.

Let's watch how strong the support is gonna be. Short term trade is evident between a buy at 31 to 31.50 for a sell above 33.00. A stop should be maintained at 30.00.

Watch for these Trades!!!

Get into action on the following Stocks:

CFVF - Collect between 34.50 and 35.50. Support is evident at 33.50. Expect 39/40 to 41.00. Volumes above 100k is a strong trigger for the Rally.

RICH - Collect between 11/00 and 11/50. Will test the recent high of 13.40, and a rally will take it upto 15.00 based on fib extensions.

BALA - Trend reversal would lead to a minor correction. Collect between 26.50 and 27.50.

JKH - If a strong base is formed between 160(support) and 165(Resistance) it will be very bullish for the stock.

DOCK - Collect between 100 and 102. A rally will take it upto 110.50.

TAFL - 115 -128 Major support

TAFL - Stock to watch. There is a major support between 115 and 128. Once broken will test 131.50.This is a stock that moves rapidly once a trend is set. Also we should not ignore the huge price range it trades intra-day as well. That is because of the illiquid nature of the stock. If you keep a careful watch on this, there are plenty of day trades or regular short term trades if you patiently collect at the lower base of the said support area. 117.50 is the present swing low, as such try and place orders around 117.50 and 121.00 in order to reap the benefits of the huge price range movements.

ASI - Uncertain path persists

There are no firm indications for the ASI to be very bullish. However the present position of the ASI is more relieving for the bulls, but need to tread with caution.
Progress it had made in the weekly chart reveals a small up tick on the RSI, which needs to be watched.

BPPL - Watch the next accumulation

BPPL - is a young starter in the bourse but looks a bloke with a bright future. The counter rallied roughly for about a month and a half giving a return of 33%. This rally brought in many investors helping the typical accumulation to take place. Thereafter it went into a consolidation with volumes seen in a distribution phase. The next rally will surely happen as and when we see some increased volumes. Present support is at 14.50, anything below will be a bargain for investors. Traders need to watch the volumes, to initiate an entry. Watch!!!

JKH - Start Collecting

JKH - Is a stock that all can not touch. Many experts fail to predict its direction up or down. However this is the maker and breaker of the entire market from time immemorial. Instead of timing the right price the practical approach toward this stock would be to collect and average. As many indicators have turned upside there is no time ideal to collect it than now. As mentioned earlier 153.50 to 159 range appears to be the present support range, and this base looks to be strong with the counter being oversold. In the short term we might see it's trending towards 170, with a test around 168 and 169. There is a major resistance evident at 165.00, as it was very strongly supported at that with a double bottom in the earlier rally which took the counter right up to 180.00. If someone decides to take a trade, then by all means STOP LOSS, and don't blame no one otherwise.