Hikal gained for the second straight week as the stock jumped 20% on the back of massive buying interest. It broke out of an 19-week long double bottom base pattern on more than 21x the 10-week average volume.
Chart Of The Day – Aurobindo Pharma Leaps to a 52-Week High
Aurobindo Pharma displayed strong price-volume action for the fourth consecutive session. Today, it gained 5.5% on 4x the 50-day average volume. Market participants continued to throng the counter after the Company announced a $900M acquisition of Sandoz Inc on Thursday.
Why Fundamental Factor is Required if The Technical Factor is Enough to Determine Market Bottom?
Absolutely not. Earnings and market fundamentals often don’t turn around until well after the market has hit bottom. That means taking those factors into consideration would cause you to be very late to the party. Remember, there has never been a new bull market without a follow-through confirmation preceding it on one of the three major indexes. Therefore, taking underlying earnings and fundamentals into consideration is not only unnecessary but could be very costly.
Chart Of The Day – Usha Martin Rises for Third Straight Session
Usha Martin rallied for the third straight session and closed 3.6% higher. The stock has seen increased buying interest following news reports of Tata Steel, JSW Steel lining up to buy its debt-ridden steel business. Today, the stock broke out of a cup-with-handle base on above-average volume.
Chart Of The Day – Mindtree Overrules Market Weakness
Mindtree bucked the market trend to jump 3% on the back of strong accumlation in today’s session. As a result, the stock raced to a new high and closed 5% above its pivot price of Rs 1,101.20.
