What is a Turning Point? -
Turning point is a level where stock either succumbs to the existing trend or turns around and create a new trend. Example: Sometimes a stock always sells off from a level, and we call that a resistance but there comes a time where stock does not sell off but breaks out and turns that resistance into support.
The two stocks at turning point are -
1. HDIL at resistance point of 124
HDIL stock has struggled below 124 for years now and hence any buying that takes it above 124 will dramatically change the perception about the stock in trading community. That movement itself has potential to propel the stock higher. Having said that - there are many frustrated investors holding the stock to exit around 124. So, it will be great contest to watch here and if buyers take it above 124 - the stock will see more buying (breakout).
2. IndiaBulls Real Estate at resistance point of 84.5
Indiabulls Real Estate stock has sold off from 84.5 various times in last many years. Will the same script repeat again or this time stock will turnaround and march higher. It will be interesting thing to watch. Can this stock breakout?
Why a breakout appears possible?
There is fundamental reason for this excitement. There are reports that BMC has made a proposal to allow more floor space index (FSI) of 6.5 and 8 in the vicinity of major railway stations near central business districts and other employment nodes. Having said that - First the stock will have to breakout, and then only we can say..the stock has turned around.
Disclaimer – The state of the market notes is Deepak’s perspective on the market. The column is purely for educational purpose. Nothing contained herein is a solicitation to trade or a recommendation of a specific trade. By reading this publication you agree to make no trade relying in whole or in part on the comments of the writers