Technical Analysis – Financial Technologies (India)

Posted by admin

September 30, 2010

The stock nose-dived 11 per cent on Friday with heavy volumes after the market regulator turned down MCX Stock Exchange’s application to offer trading in equities, debt, and derivatives segment. The stock has tumbled 14 per cent over the week and is hovering well below its 50 and 200-day moving averages. Since January 2010 peak of Rs 1,721, the stock has been on an intermediate-term downtrend. The stock is currently trading just above its long-term key support band between Rs 1,180 and Rs 1,200.

Conclusive fall below this support will accelerate its downtrend and drag the stock down to Rs 1,050 or Rs 900 in the medium to intermediate-term. However, bounce back from the above mentioned support will take the stock higher to its immediate resistance of Rs 1,300 and then to Rs 1,400.

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Technical Analysis