HIGH BETA INFRA; IMPORTANT SUPPORT / ENTRY LEVELS PART 2

HDIL: CMP 73.5

• The scrip has sliced through important supports at 89 (Fibo 50% retr) and 82 (Fibo 38.2% retr) pretty effortlessly in the last ten odd sessions.
• The next important support is at 72 closing basis.
• If 72 is taken out decisively, then the next retracement based support is at 56 levels.
• A lot depends upon macro Fundamentals of the Market, which strictly speaking is outside the purview of Technical Analysis; but as realistic Market Participants we need to take a holistic techno-fundamental view.
• If the macros take a turn for the worse next week then we will see 56 on the scrip sooner or later. However, if the converse happens on the Macros then 72 would hold. That is the risk-profile we are up against.
• My suggestion would be to buy some at 72 levels or thereabouts and then average out at all 7-10% drops. My gut feel is that the broad 56-72 range should hold and that 56 levels is very unlikely to be violated. This is the best one can do.

IVRCL CMP 57.45

• Purely on technicals, the next support level is at 55.5 which roughly corresponds to the Fibo 61.8%.
• If 55.5 is taken out decisively on a closing basis, then the 50% retracement support is at 51 approx.
• Below that, very interestingly, there is a massive support at 46 levels which is the confluence of the Fibonacci 38.2% retr, the 150 DMA and the 200 DMA. Truly amazing!!
• Short point, pick up this scrip at 55 levels and add more at the aforementioned supports ie 51 and 46-51 zone. This strategy plus the added possible kicker of positive news flow in the scrip should keep you comfortably in the green over a stretched time frame.

FOR PART 1 OF THIS POST MUST  SEE THIS