Balrampur Chini and Bata India: Stock analysis update

Hello Readers!

Please find the follow-up on the analysis of Balrampur Chini and Bata India below. I will be sharing the rest with you soon along with some fresh stock analysis!

BALRAMPUR CHINI: Give it a break! 

Ticker: Balramchin
CMP: Rs. 101.40

After our initial analysis  of this stock we also had a follow up post on it . Let us move on to the current chart's analysis. 

ANALYSIS: Having made a high of 120 from the level of 71 where we spotted it, Balrampurchini has started taking a healthy correction. Support appears to be at the level of 86-92 which is the 50-61.8% correction from the peak. Once that level is achieved, we will look at charts again and take a call about the outlook. However, owing to the government’s move of producing ethanol directly from sugar, I believe the fundamentals continue to be very strong. 

BATA INDIA: Ready for a Sprint! 

Ticker: BATAINDIA
CMP: Rs. 1004

Original analysis: https://kavitatechnicalanalyst.blogspot.com/2018/10/bata-india-walking-on-slippery-ground.html

Analysis: In the previous post we mentioned a lack of confidence in Bata’s up-move around 950 levels. However, despite the seemingly weak technical outlooks in my opinion, Bata touched a high of 1030 odd levels and turned lower for a correction which took it to the sub 950 levels. Post the correction the price of Bata has started rising again and this rally is supported by strong technical too as shown above.

The probably target at this point is 1100 in the near term.

That is all for today. Please do share your feedback, appreciation and especially criticism. You can reach out to me directly via email kchamaria1993@gmail.com. Dont forget to follow my blog for regular updates directly in your inbox. 

BATA INDIA (Update): Not convinced with the bullish story

Hello Readers,

In the previous post, I spoke about a lucrative short bet on Bata. The reason was simple, weak evidences on the chart.

Today I reanalysed the stock to try and come up with a revised analysis as the resistance has been breached and the stock is trending upwards. However, upon a close look, the story which is being told by the consortium of price, volume and RSI is not in agreement with what a strong bullish stock should look like. The evidences suggest that the ongoing rally is being supported by a few big players who are influencing the price. The retail participants are majorly selling the stock and we know that without retail participation in buying, no stock can continue its rally.

Please refer to the images below for a detailed analysis. I intend to look into the quarterly data soon to try and pick up on whatever is encouraging this 'spike' buying.

Adios, for now!

BATA INDIA- Walking on slippery ground!

Stock Name: Bata India

Ticker name: BATAINDIA

Current market price: Rs. 910

Outlook: Bearish

Target downside levels: 848, 802

Resistance: 927

Hello Readers!

The hourly chart of Bata India is giving weak signals!

The above picture is pretty much self explanatory. There are 3 specific evidences which indicate that Bata India might take a dip in the upcoming trading sessions. Let's look at them technically.

1) The dark blue line is the 200 EMA on the hourly chart of Bata. It has acted as the resistance zone on several instances as highlighted on the chart with blue circles. In technical analysis, moving averages tend to act as very important support/resistance zones across time frames and are used by trades as entry levels.

2) Another factor supporting our bearish view on Bata India is the fact that the trendline had been breached in the previous correction. This indicates underlying weakness even if the price bounced up again. Broken trendlines should be taken very seriously as all major corrections are first signalled with trendline breaches.

3) RSI - our momentum indicator, has reached the oversold zone of 60 and turned lower without crossing to the 60 to 80 zone which is the bullish zone for up trending stocks. It has been observed that a stock which is in the bear trend, reached an RSI level of almostly 60 in pull backs and upside corrections. Many traders use the RSI level of 60 to enter into fresh shorts in a stock which is displaying other signs of weakness and forming lower lows in price on charts of a higher time frame.

This is all I have on the technical outlook of Bata India's chart. If you have additional insights or even opposing views, please feel free to reach out and we can discuss! Healthy learning!

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