Escorts has been the outperformer stock of this pandemic in my views. It has crossed it's previous highs already and has no aim of correcting looking at the way it is rallying. But technical indicators says something else. 1. RSI- If we have a look at the RSI, it does not give us any positive signs. There is a negative divergence that has started since 30th jan. I have marked it on the charts. I don't know whether to interpret or no as there seems to be no stopping this stock. 2. MACD- MACD has topped out or atleast it is in the overbought zone. Last time also when the MACD divergence happened from this zone, the stock corrected almost 14% before falling prey to the covid-19 hit.
To be honest i do not have a clue about it, It might not even correct but buying at this level doesn't seem to make sense. One can think of selling around 1000 mark with a strict stoploss as per your analysis and capacity for 850 levels. This stock is meant for correction according to the divergence. Please share your views if any!
I am expecting correction but some how every day huge fake orders either on sell or on buy restrict any major movement down even when market corrects. No idea what is the intent of operator? May be wants to selloff big time around expiry...???
je_sh
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As we can see, I had posted my view on 2nd june after which it went to 1003 and dropped from there. We can see the divergence taking in place for both, RSI and MACD.
rajeshguptamx
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Very correct view.I am impressed as it is without any bias...The run is purely on involvement of operator..So even if sensex or nifty goes down it does not correct. And for no reason it has been on bullish run, non stop, from 670 levels.Though why it reached 670 level when bullish signal were there around 740 is also not understand able unless operator involvement.. Operator has selected a fairly stable share for manipulation as this abnormal run is without any major reason. Suddenly you find couple of so called advisories also giving target in range 1010-1135...So you see, this is all plot and ultimately retail investors will get badly hot after getting trapped.
je_sh
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@rajeshguptamx, exactly! this is the second time that escort made a rally from it's 600 levels without any pause as such.