COMBINING TECHNICALS WITH

FUNDAMENTALS
Hitesh Patel, VP Conference 2017

MAIN AIM IS TO SENSITISE VP GUYS

TO FIRST LEVEL TA TO SPOT EASILY
IDENTIFIABLE PATTERNS
 TECHNICAL ANALYSIS
• TECHNICAL ANALYSIS IS THE SCIENCE OF
RECORDING, USUALLY IN GRAPHIC
FORM, THE ACTUAL HISTORY OF
TRADING (PRICE CHANGES, VOLUME OF
TRANSACTIONS, ETC.) IN A CERTAIN
STOCK OR IN “THE AVERAGES” AND
THEN DEDUCING FROM THAT PICTURED
HISTORY THE PROBABLE FUTURE TREND
 TECHNICAL ANALYSIS
CERTAIN PATTERNS OR FORMATIONS, LEVELS OR
AREAS, APPEAR ON THE CHARTS THAT HAVE A
MEANING IN TERMS OF PROBABLE FUTURE
TREND DEVELOPMENT.
THEY ARE NOT INFALLIBLE, BUT THE ODDS ARE
DEFINITELY IN THEIR FAVOR. TIME AFTER
TIME, AS EXPERIENCE HAS AMPLY PROVED
THESE PATTERNS LEAD TO SUCCESSFUL
OUTCOMES.
 CUP AND HANDLE
• THIS PATTERN CONSISTS OF A LARGER CUP OR A
SAUCER SHAPED ROUNDING BOTTOM FORMATION
FOLLOWED BY A HANDLE LIKE ATTACHMENT.

• MOST OF THE TIMES IT IS A CONTINUATION PATTERN.

I.E IT OCCURS IN THE MIDDLE OF A BULL RUN. A
PRECEDING RALLY IS ALWAYS A DESIRED PATTERN.
THIS PATTERN INDICATES A TEMPORARY HALT IN A
RALLY WHICH PROVIDES AN ENTRY POINT FOR THOSE
LEFT BEHIND EARLIER.
 CUP AND HANDLE contd
• VOLUMES DURING A HANDLE FORMATION ARE
VERY LOW INDICATING LOW LEVEL OF INTEREST
AND MORE OF A TIME CORRECTION. USUALLY IN
AN IDEAL PATTERN, THE BOTTOM OF HANDLE
SHOULD NOT GO BELOW THE 50%
RETRACEMENT LEVEL OF THE CUP

• PRICE TARGETS ARE ARRIVED AT BY ADDING THE

HEIGHT OF CUP TO THE BREAKOUT LEVEL. THESE
ARE OFTEN MINIMUM TARGETS AND OFTEN
EXCEEDED
BHARAT BIJLEE LTD WEEKLY
BHARAT BIJLEE MONTHLY
 FUNDAMENTALS -BBL
• TRANSFORMER SECTOR IS ON A ROLL

• GOOD NOS REPORTED FOR MARCH 17 QTR

• CO HAS INVESTMENT IN SHARES OF SIEMENS

HDFC, HOEL ETC AND THESE STOCKS HAVE
RUN UP DURING CURRENT BULL RUN.
MONSANTO
 MONSANTO FUNDAMENTALS
• GOOD RESULTS REPORTED FOR PAST THREE
QUARTERS
• MNC COMPANY WITH DOMINANT POSITION
IN CORN HYBRIDS AND ALLROUND
AGROCHEMICAL PRODUCT.
• GLOBAL MERGER OF BAYER AND MONSANTO.
VST TILLERS
 VST TILLERS FUNDAMENTAL
• WELL MANAGED COMPANY
• CO HAS EXPANDED CAPACITY OF TRACTOR
MANUFACTURING.
• TRACTORS ARE THE NEW GROWTH ENGINE.
• WITH NEW FACILITIES, THE LAND AT
WHITEFIELD BANGALORE COULD OFFER
OPTIONALITIES.
• FARM MECHANISATION PICKING UP PACE.
ORIENT REFRACTORIES
 ORIENT REFRACTORIES
• INDIRECT WAY TO PLAY STEEL CYCLE.
• WELL MANAGED CO WITH RHI AS PROMOTER.
RHI IS A GLOBAL LEADER IN REFRACTORIES.
• PRODUCTION CAPACITY OF 9300 TONS
EXPANDED BY ANOTHER 2400 TONS AT A COST
OF 17 CRORES, TO MEET GROWING DEMAND
OF REFRACTORIES GLOBALLY.
VINATI ORGANICS
RELAXO live example
HSIL LTD
 FLAGS AND PENNANTS
• THIS IS A PATTERN WHICH AGAIN IS A
CONTINUATION PATTERN AND OCCURS
MIDWAY DURING A STOCK’S BULL RUN. IT
AGAIN INDICATES A COUNTERTREND SMALL
CORRECTION DURING AN ONGOING BULL RUN.

• AFTER A SHARP ALMOST VERTICAL RISE, THE

STOCK PRICE TENDS TO CONSOLIDATE IN A
SLIGHTLY DOWNPOINTING FLAG PATTERN
WHERE VOLUMES DRY UP.
 FLAGS AND PENNANTS contd
• HERE, THE BOTTOM OF THE FLAG SHOULD
IDEALLY NOT CORRECT MORE THAN 50%
RETRACEMENT LEVEL OF PRECEDING RALLY.
AND A BREAKOUT PAST THE FLAG PATTERN
SHOULD OCCUR WITH HIGHER VOLUMES.
•
• PATTERN TARGETS ARE ARRIVED AT BY
ADDING THE HEIGHT OF THE FLAGPOLE TO
BREAKOUT POINT.
BHARAT BIJLEE DAILY FLAG
KCP LTD
 KCP LTD
• CONGLOMERATE WITH MAIN INTERESTS IN
CEMENT, SUGAR, POWER, HEAVY ENGG,
TURNKEY SUGAR AND POWER EPC,
HOSPITALITY
• CAPACITY EXPANSION IN CEMENT AT
MUKTYALA TO DRIVE CEMENT VOLUMES
• AROUND 33 MW POWER ASSETS INCLUDING
RENEWABLES
VST TILLERS WEEKLY FLAG
MAYUR UNIQUOTERS
ASTRAL POLY
SUNDARAM FINANCE
MANAPPURAM SMALL FLAG
MANAPPURAM BIGGER FLAG
 DOUBLE BOTTOM
• ONE OF THE COMMON PATTERNS SEEN
DURING BOTTOM FORMATION.
• TWO BOTTOMS AND AN INTERMEDIATE PEAK
ARE IMPORTANT POINTS TO WATCH OUT.
BREAKOU T PAST THE INTERMEDIATE PEAK
WITH HIGH VOLUMES INDICATES
CONFIRMATION OF PATTERN.
• TARGETS ARE ARRIVED AT BY ADDING HEIGHT
OF PATTERN TO BREAKOUT LEVEL.
DATAMATICS GLOBAL
DCM SHRIRAM
MAX INDIA
CAPITAL FIRST – double top
HCG
IDEA double bottom
USL daily double bottom
USL WEEKLY double bottom