HDFC’s Technical Switch Trades: Buy Gujarat State Fertilizer & Chemicals and sell Cadila Healthcare | Technical Analysis | Investment Idea | Indianotes.com


Gujarat State Fertilizers & Chemicals Ltd (GSFC): BUY


The stock price (GSFC) as per daily timeframe chart seems to have reversed upside of its near term down trend.

After showing into gradual upmove or choppy trend short term, the stock price witnessed promising upmove today and placed near the day’s high.

We observe formation of positive sequence of higher tops and bottoms and the recent low formation of around Rs.133 of mid of Nov could now be considered as a new higher bottom of the sequence. Hence, one may expect further upmove in the stock price for near term.

Daily 14 period RSI is above the key lower levels of 40 and is turning up now. This pattern of momentum oscillator is suggesting a strengthening of upside momentum.

Cadila Healthcare Ltd (CADILAHC): SELL


The daily timeframe chart of this healthcare stock is indicating a negative bias for near term.

After the sharp decline of early to mid of Nov, the stock price has shifted into consolidation pattern in the last few sessions.

The key overhead hurdle of Rs.450 is now acting as a strong hurdle for the stock price as per the concept of change in polarity.

The downside breakout of the larger range movement of the last few months seems to be validated with recent false upside bounce. Hence, one may expect further weakness for near term.

The negative chart pattern in Cadila Health is indicating further weakness. One may look to create short positions as per the levels mentioned above.

   Click here to read the full report