DTS - 13.02.2017

ALUM - Profit growth and dividends can take it to new highs

Alumex Plc is going from strength to strength in their industry here and abroad. The encouraging increase in profitability which in turn helping increased dividend payments could make the prices to move up in the short to medium term. There is a strong support at 20.00, and the resistance at 22.00. Once the sideway movement within this channel is complete we can expect newer highs testing 23.50 and above. Keep an eye on this counter, and certainly a worthwhile stock to include in your investing and trading portfolios.

ASI - Will the momentum continue?

There were 2 highlights in the market behaviour during the week i.e. JKH moving up 6 rupees with higher volumes, and a noteworthy foreign buying linked to JKH. Positive credit rating by fitch could help the bulls, just as the Bears were when fitch gave Negative credit ratings. The way JKH performed we could see a reversal during next week, before it happens we may see it notching up another 2 to 3 rupees. Above 149 many will queue up to sell at 150. Hitting 149 would be a good return if you bought between 137.50 and 140. The way JKH goes will make the ASI to go, unless we see some action from some other heavy weights. MELS could be one, as it has a momentum, and a strong weight in the make up of the ASI. 6063 support needs to be respected in the short term. Let's hope for the best.......

Weekly Market Summary - 09.02.2017

JKH - FAMOUS FOR SURPRISES.

JKH had many GAP formations right along their price behaviour. Today's price action too displayed that trend, with 145.00 being the open which was a failed support a few weeks ago. The Price closed above that today. The Candle for the day was almost like a formation of a star, not an exact star though. There is still room for the stock to edge up towards 148 and 149, at which point there is some strong resistance to be penetrated. That penetration needs a strong and valid reason, which is not in the public domain at the moment, hence may not happen that easily. Also if we see the price heading upto 148 to 149 that means we are talking of an 8 to 9 rupee move in a matter of 3 days. That too may not be realistic for the price to keep going up without a break. Ideally a pullback is healthy. BUT JKH IS FAMOUS FOR FULL OF SURPRISES.

ASI - Reversed, but has a long way to go

Index got battered over the last 2 days bringing it way down to 6065 points. Today's recovery was a sigh to be relieved. But there is a long way to go. We need to see atleast the 9,20 and 50 SMA's broken out, which are pathetically seem like hard to come by. As such it is not so easy to convince traders to get busy anytime soon. However the savvy Trader who are habitually trade are in the game, but not at large. JKH and some other heavy weights did the Trick as expected, but one of the SL20 counters i.e. LION.N.0000 became a spoil sport when it was dragged down Rs. 54.50 sending the ASI to the red for a few minutes. Nevertheless the Bulls on JKH in particular made sure that the ASI would close a sizable 24.7 points to close at 6093 points. It is certainly a day to day watch as nothing is certain elsewhere in the Country.

DTS - 07.02.2017