Update - 17th July 9.40 AM
Took support near 685 and rallied up. Now at 732...
Entered the crucial, fresh resistance zone of 730 - 770.... One might see some selling pressure.... Ba cautious...
Cheers
Hrishi
Hi all,
Many people asked me about the IPO allotment of SBI Cards so just thought of putting in my views for it.
Please note that, this post is solely based on technicals and not taking in to account any financials.
It was allotted at Rs.755 in the IPO in the month of March - April , after plummeting to even below 500, the stock has rallied till almost the cost price today with a high of 726....
Now, as per charts, the stock has resistance in the range of 730 to 770 (all time high)
Today it rallied strongly till 726, but could not sustain these levels and closed near 700, thus creating a perfect shooting star pattern on daily charts, which is a bearish signal. Also it closed below the Bolliger Band which mean a reversal or a sideways price action. Even the volume was relatively higher, coupled with overbought conditions on RSI, which put together, is not a good sign for bulls
So please have an eye on 693 to 698 levels on the lower side below which the stock might loose the steam and can trade in a muted manner for some more time until further triggers.
For existing shareholders, If it has to go up further in short term, prices should not ideally break 695.5 or on a relaxed side till 685 to 680, below that we might have to wait for some more time for the IPO allotment to get profitable...
If the stock has entered a bullish zone, it ideally should not break even 695 to 693... and then once can expect a quick reach to the allotment levels above 755 (though, after surpassing the hurdle at 730)
Fresh traders can take a risky trade by shorting below the same with SL above the high.
However a better plan of action can be to buy on dips as the overall trend is up with higher tops and higher bottoms(only after bullish confirmations) with supports below 680..
Cheers
Hrishi
Took support near 685 and rallied up. Now at 732...
Entered the crucial, fresh resistance zone of 730 - 770.... One might see some selling pressure.... Ba cautious...
Cheers
Hrishi
Hi all,
Many people asked me about the IPO allotment of SBI Cards so just thought of putting in my views for it.
Please note that, this post is solely based on technicals and not taking in to account any financials.
It was allotted at Rs.755 in the IPO in the month of March - April , after plummeting to even below 500, the stock has rallied till almost the cost price today with a high of 726....
Now, as per charts, the stock has resistance in the range of 730 to 770 (all time high)
Today it rallied strongly till 726, but could not sustain these levels and closed near 700, thus creating a perfect shooting star pattern on daily charts, which is a bearish signal. Also it closed below the Bolliger Band which mean a reversal or a sideways price action. Even the volume was relatively higher, coupled with overbought conditions on RSI, which put together, is not a good sign for bulls
So please have an eye on 693 to 698 levels on the lower side below which the stock might loose the steam and can trade in a muted manner for some more time until further triggers.
For existing shareholders, If it has to go up further in short term, prices should not ideally break 695.5 or on a relaxed side till 685 to 680, below that we might have to wait for some more time for the IPO allotment to get profitable...
If the stock has entered a bullish zone, it ideally should not break even 695 to 693... and then once can expect a quick reach to the allotment levels above 755 (though, after surpassing the hurdle at 730)
Fresh traders can take a risky trade by shorting below the same with SL above the high.
However a better plan of action can be to buy on dips as the overall trend is up with higher tops and higher bottoms(only after bullish confirmations) with supports below 680..
Cheers
Hrishi
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