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Amara Raja Batteries Amara Raja Batteries, though an investment grade scrip, has become a stock wherein one can safely trade for quick gains in the...
Amara Raja Batteries Amara Raja Batteries, though an investment grade scrip, has become a stock wherein one can safely trade for quick gains in the price range that it has been fluctuating lately. After having peaked out at Rs 328 in late January this year, the share fell to a low of Rs 248.95 in late February before it rallied upto a lower top of Rs 298. The share then fell to a low of Rs 259 and once again rallied upto a third and still a lower top of Rs 292.95. Since this was a bearish pattern on its daily chart, the share took up a return journey and slid to a third and still a lower bottom of Rs 238.25. After having fallen to this low, the share rallied upto a high of Rs 296 and thereby came out of the bearish impact and corrected upto a low of Rs 240.05 to retest the support level and it succeeded too as the next move was in an upward direction that took the share upto a high of Rs 261 before it closed at Rs 258.80 last week. Thus the share has established Rs 238 to Rs 240 as strong support levels and Rs 292 to Rs 298 as resistance levels and therefore buying close to support levels is most likely to result in short to medium term profits. One can also buy the share for medium to long term investment if it's available slightly lower from the last closing of Rs 258.80. Andhra Paper Mills Andhra Paper Mills was one of the very few stocks that could rally significantly and also close higher on day to day and also week to week basis during the week that was. It could be so because of the chart pattern formed at the bottom which is referred to as a saucer pattern in technical term. The saucer pattern at the bottom of a chart is generally followed by an uptrend or rallies and the same has been true in this case also. This share had peaked out at Rs 373.30 in September 2012 and started going down - slowly initially and swiftly in the later stage - which was in line with the general trend in the market. It first fell to a low of Rs 184.90 and then rallied a little but only to fall back to a lower bottom of Rs 179 which turned out to be the final bottom before it rallied and corrected upto a higher bottom of Rs 181.35. Thus, if these three bottoms are joined by a line, a picture of a saucer becomes visible and such pattern generally helps the share to turn bullish and in this case, the share has turned bullish and therefore suggested for picking up for short term trading to medium term investment goal. However, it would be better if the share is bought only at a corrected price.