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Infrastructure Development Finance Company Limited
Symbol: IDFC
Suggestion: Buy, Stop loss at Rs. 90
Open 91.00
High 99.20
Low 90.50
Last Price 98.20
Fig. 1: Price movement (1) - IDFC
Figure 1 shows the movement of stock price of IDFC ltd. It also shows a trend line which the stock has started following recently (from last 3-4 sessions). The direction of the trend is upward, but nothing can be said about the life of this trend. So it also possible that it is a whipsaw. In order to figure out this, further tools are used as shown below.
Fig. 2: Price movement (2) - IDFC
This figure is again a snapshot of the stock price movement of IDFC ltd., along with 3 SMA lines that represent week, fortnight and monthly trend. The day count of the SMA lines being 5 (blue), 10 (brown) and 22 (pink). It is clear from these lines that the stock prices are expected to rise further up as the short term trend is moving above all other SMA lines. This is further confirmed with the help of other tools as shown below.
Fig. 3: Bollinger Band - IDFC
Bollinger band (as shown in figure 3) is one of the most common tool that gives some idea about the trend of the stock. As shown, the price is moving above the SMA(20) base line and thus the trend for now is considered to be bullish. Point to note is that the price has been moving above the base line from a long time (around 2 months) with intermittent bear effects.
Fig. 4: ADX - IDFC
For further analysis, the phase of the stock has to be determined, and the most simplest way to do so is by using ADX or Average Directional Index. The ADX shows a value of 43.39, therefore indicating that the stock is currently in the trending phase.
Fig. 5: MACD Histogram - IDFC
As the stock is currently in the trending phase, MACD histogram can be used to confirm the presence of Bulls. MACD histogram (as shown in fig. 5) displays that the bulls had been present from quite some time and they have started gaining strength from last 2-3 sessions. Keeping this trend running, they are expected to gain further strength in coming sessions.
Therefore, it is identified that the stock prices of IDFC ltd. are expected to rise further and thus the investors are advised to buy the stock with a stop loss at Rs. 90.
i am inderjit Sharma. I belong Amritsar. I am working in HDFC BANK in RIC DEPARTMENT. my daily work loans file investigation and catching the fake Doucement in last 7 years.Pervious five year working in ICICI BANK same job profile.
I understand you are a gem with all such credible decorations i.e. PG in Finance, IT grad, MBA(Tech)..WOW!
Never ever read me as if I am criticizing you.
In fact all my life I avoided mathematics. Until my little daughter (when she was a kid) failed in Maths and Computers. I prepared myself afresh and tried to keep pace with all that you have ease and expertise..
I was reacted the way, people like me, who may become your fans and admirers one day, may appreciate if you transform your expression for them. I all meant, you should write for such idiots like me.
To explain my point, soon I will key down one post on your subjects..
But trust me, Rohan I value you both as an financial analyst and as an expert absolutely..
With best compliments,
Ashok
I’m listing all such complex terms so that any other analyst can make sense out of it. In the end, I mention my advise that can be used by any layman.
I’ve been writing articles that can be useful for both analysts and investors. But I think I can only write about any one of them. I’m still not clear how, but know have to work on it. If you have any ideas or suggestions, please let me know.
Thanks a lot.
Regards
Rohan
Still I earnestly think that you should review your article keeping in mind the visitors who find mathematics and statistical graphs hard to understand.
And please don’t take it as a criticism. I value your work. What I mean to say it should not be straining.Otherwise great effort. Ab Saaray loge to hamaray jaisay mand buddhi nahin hain..kuchch log in baaton ko aasanee say samajh saktay hain.
God Bless You.
I try to make my articles look simple but the subject that I’m writing about, forces me to use such language.
I’ll still try and incorporate all your suggestions.