Long term Technical Outlook of JPassociates, 23 December 2014

The scrip, after hitting an all time high of 339.90 in January 2008, has been in decline for the past 6 years. Recently, it has hit a low of 23.10.


The scrip has broken the 2008 low of 32 in 2013 and 2014. When compared to Nifty, this scrip has broken 2008 lows, while Nifty hasn't broken the 2008 low. While Nifty has moved past the 2008 high, the scrip couldn't cross it's 2008 high of 339.90. In 2009, it rallied to a high of 180.


Now, it seems to be bottoming out in the short term and it is likely to rally towards 35 in coming months, if the level 21 is not broken in the downside. In case if it breaks 21, then it is likely to decline towards 15.


The longer term technical picture suggests that the scrip is very close a longer term bottom but only a move above 100 would confirm it. The scrip is likely to trade between 20 and 100 for another one or two years before breaking above 100. The medium term trend is likely to be sideways.