MarketLok
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Is Bank of India continuing its anti-investor run?
Bank of India is going through it's sixth anniversary of being an anti-investor stock. But you do still hear Indian investors holding & enquiring about the stock. This is because there's a perception in the country's investors that banking stocks & banks in India are a safe bet. Though this is not entirely false in the historical context that banks & their deposits have been protected in the country. But from an investment point of view, this is simply similar to putting your money under a mattress or inside a shoe & forgetting about it, this generates no returns.
The stock has been on a down trend since 2011 & this can be easily spotted on the weekly chart below as illustrated. The stock did show a false trend (as marked in the chart below) during early 2014, while also indicating a failure in trend immediately hence any up move was set to be unstable & fail.
But as with any falling stock it tickles an investors curiosity, as to when it will be an opportunity worthy of profiting from. The following are the supports & resistances on the stock (also market in the daily chart above) :
Resistances : 157, 140, 118, 107
Supports : 91
The stock has major resistances at 157 & 140, whereas immediate minor resistances at 118 & 107. As of now there seems to be no promising scenario of a price improvement in the stock. The charts show no base formation hence any sudden moves will result in a reversal soon. The supports for the stock are also weak, with a support at 91 which only offers short term respite. From an investor perspective the stock is in a large bear move languishing at it's prices of 2005 & also showing no signs so far of stopping.
Bank of India is going through it's sixth anniversary of being an anti-investor stock. But you do still hear Indian investors holding & enquiring about the stock. This is because there's a perception in the country's investors that banking stocks & banks in India are a safe bet. Though this is not entirely false in the historical context that banks & their deposits have been protected in the country. But from an investment point of view, this is simply similar to putting your money under a mattress or inside a shoe & forgetting about it, this generates no returns.
The stock has been on a down trend since 2011 & this can be easily spotted on the weekly chart below as illustrated. The stock did show a false trend (as marked in the chart below) during early 2014, while also indicating a failure in trend immediately hence any up move was set to be unstable & fail.
But as with any falling stock it tickles an investors curiosity, as to when it will be an opportunity worthy of profiting from. The following are the supports & resistances on the stock (also market in the daily chart above) :
Resistances : 157, 140, 118, 107
Supports : 91
The stock has major resistances at 157 & 140, whereas immediate minor resistances at 118 & 107. As of now there seems to be no promising scenario of a price improvement in the stock. The charts show no base formation hence any sudden moves will result in a reversal soon. The supports for the stock are also weak, with a support at 91 which only offers short term respite. From an investor perspective the stock is in a large bear move languishing at it's prices of 2005 & also showing no signs so far of stopping.
MarketLok
Junior member
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Market Indices Nifty & Sensex Before the Budget
The primary Indian indices Nifty & Sensex have headed lower & lower over the past 11 months & with the budget looming around the corner, investor expectations are high & so are their fears. So what better a time to take a look at the future prospects of the primary market indices.
Let's take a short look at how the Nifty got to where it is now. The indices bottomed in 2009 followed by a rally & then were stuck in a dragged out sideways zone for three years, from January 2011 to January 2014 (as marked in the Monthly chart at the bottom of this post). Followed by an enthusiastic bull run throughout 2014, with the Nifty touching life-time highs of 9100. But soon after failing to move above a critical resistance of 8997 in January 2015, it began to weaken. Though not yet a bear signal, it did show us that the market might weaken or go sideways. This however changed over the next six months.& finally during the first week of July 2015 the market did signal an end of the bull run, as marked in the weekly chart above.
The Nifty has since been in a bear phase for the last 11 months & is showing no respite yet for the bulls, even after seeing the Nifty loose 2000 points from it's life-time highs. We see the Nifty heading towards it's next support at 6665 & if the market goes below this we will see it head towards a further stronger support at 6200. The probability of the indices going below 6200 is very unlikely, as the 3 year sideways price action (as indicated in the monthly chart) has established a very strong base for the markets, breaking such a price level would require catastrophic global events. It would be wise of investors to look for indications of base formation & bottoming around 6200, for profitable long term investment opportunities.
Long term supports & resistances for investors (also marked on the weekly chart above) :
Supports - 6665 & 6200
Resistances - 7441, 8329-8416 (zone), 8892
Short term supports & resistances for traders (also market on the daily chart below) :
Supports - 7150, 7077, 6869
Resistances - 7510, 7363, 7260
The primary Indian indices Nifty & Sensex have headed lower & lower over the past 11 months & with the budget looming around the corner, investor expectations are high & so are their fears. So what better a time to take a look at the future prospects of the primary market indices.
Let's take a short look at how the Nifty got to where it is now. The indices bottomed in 2009 followed by a rally & then were stuck in a dragged out sideways zone for three years, from January 2011 to January 2014 (as marked in the Monthly chart at the bottom of this post). Followed by an enthusiastic bull run throughout 2014, with the Nifty touching life-time highs of 9100. But soon after failing to move above a critical resistance of 8997 in January 2015, it began to weaken. Though not yet a bear signal, it did show us that the market might weaken or go sideways. This however changed over the next six months.& finally during the first week of July 2015 the market did signal an end of the bull run, as marked in the weekly chart above.
The Nifty has since been in a bear phase for the last 11 months & is showing no respite yet for the bulls, even after seeing the Nifty loose 2000 points from it's life-time highs. We see the Nifty heading towards it's next support at 6665 & if the market goes below this we will see it head towards a further stronger support at 6200. The probability of the indices going below 6200 is very unlikely, as the 3 year sideways price action (as indicated in the monthly chart) has established a very strong base for the markets, breaking such a price level would require catastrophic global events. It would be wise of investors to look for indications of base formation & bottoming around 6200, for profitable long term investment opportunities.
Long term supports & resistances for investors (also marked on the weekly chart above) :
Supports - 6665 & 6200
Resistances - 7441, 8329-8416 (zone), 8892
Short term supports & resistances for traders (also market on the daily chart below) :
Supports - 7150, 7077, 6869
Resistances - 7510, 7363, 7260
You realise you are responding to price action from 2016?
not what you said yesterday. let us know what you think tomorrow
Inquisitor
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So not only do you reply to messages in other threads posted 14 years earlier, but now you are replying to a post you made yourself on July 1st but slightly disagree with yourself on what you posted?
Have you thought about a change in the work you do as you would be well suited to a career in comedy?
lucreceross
Junior member
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Thanks for sharing these insights.
