Here is my view on SAIL and HIndalco
SAIL
Looks miserable on the chart. During the correction it almost touched the year low. All indicators are bearish. It did pick up after the correction but unable to cross the stiff resistance at 54. There is too much density overhead with resistances at 57, 59, 62 etc. A falling ADX indicates lack of trend. Better to keep off this now. In general the steel sector is not performing well now.
HINDALCO
It is a good company. They have been consistently doing better in the last three years. The half yearly result is also very good. The net profit increased about 25% compared to the corresponding period last year. It is definitely a long-term investment.
The comany has announce rights in the ration of one for every four held at a rate of 95 per share. Friday was the last day for purchase of cum rights shares. Today is the book closure and would remain closed till 28th. So the price was expected drift down towards the rights price. But todays drop was quite huge.
Chartwise it does not look positive now. It was slowly turning positive, but todays drop made it worse. As per chart the short term is bearish, the intermediate term is neutral. There also lack of direction. The stock may drop further. You may get it still cheaper.
regards
Karthik[/QUOTE]
Hi Karthik,
thanks for your views on this
I am holding SAIL and HINDALCO. I purchased SAIL(100 at 66) in the bull run . It proved out to be a loser.
Regarding hindalco I havent received any communication regarding rights issue.. Further I wasnt even aware that Friday was the last day to purchase the rights issue.
What is the benifit of rights issue to the share holders if at all the prices drop so drastically after the issue??
also what about the loss if i dont opt for rights issue??...I think those guys are taking ppl for a ride..I feel this is unfair game...
Thanks,
Shirish.