Category Archives: Foreign Investors

JM Financial Monthly Chart Analysis- 27Nov2019

JM Financial is a leading non-banking financial company (NBFC) of India. The monthly chart of JM Financial looks bearish as of today, 27 Nov 2019, because it completely lost all the gains on this month. The stock started the Nov 2019 month at 80 and went up till 100, and is now back at 83, which indicates significant selling from the 100 level.

Below 80, the stock can go down till 60, though there are multiple supports between 60-72 level. On the other hand, if the stock starts moving above 89, then it will become very bullish, and then stock can test 100, and also cross it to reach 120-125 levels.

Investors can buy some shares at 80-81, and wait for either 72 or 89 to buy more. All prices below 80 are attractive for 1-2 years timeframe. Above 100, the stock will be in strong uptrend, and one can buy in large quantity for target 120, which will be 20% upside. From 80, the target of 120 will give 50% gain. For the year 2020, 120 is the first target, and 150 is the second target. So for the year 2020, JM Financial stock has range of 60 on downside to 150 on upside.

Bank Nifty Trading – Apr2018

Bank Nifty is a highly sensitive index with sharp response to various domestic and international events, especially those linked to interest rates, currencies, international trade, etc. Its has nearly 2x beta compared to Nifty index. Feb2018 and Mar2018 were bad for Bank Nifty and it had sharp correction from 27,000 to 23,500 – PNB scam, and interest rate hikes in the US and ICICI Bank issue concerning MD/CEO.

Observe this intraday chart (5 min) carefully for valuable lessons. The lessons will be useful/relevant for larger timeframes of 15-30-60 min also.

  1. Downside Risk increases below 100 LSMA
  2. Downside Risk increases rapidly when 20 LSMA and 50 LSMA cut below 100 LSMA
  3. Fall stops/reverses on closing above 50 LSMA


IFCI Trading – 05Oct2016

Buy IFCI at 26.65 for Target 28.65 with Stop Loss 25.00. That’s 2 points reward, 1.5 points risk. This trade may take 1-2 months. The uptrend from March has been broken but IFCI tends to bounce back from sharp corrections. Market conditions are favorable for financial stocks with reducing interest rates. Investor with 12-18 months timeframe should hold IFCI for target 40, which can give 50% return on current price.