ShrutiAggarwal
Member Since 8 December 2015
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ShrutiAggarwal's Insights

Insights for December 2016

Rolls Royce shall be avoided for the time being as the company announced on its capital day on 16th November, that a new accounting standard that forbids the acceleration of revenue recognition, will hurt near term results at Rolls-Royce Holdings PLC. However, the analysts feel that the reporting will be more transparent under IFRS 15.

The company finished trading on the London Stock exchange at 675p a share on Tuesday, 27th December. Post the capital market day, the stock reacted negatively to the news on new accounting standard and Rolls Royce fell sharply from 740p to the lows of 635p, a fall of almost 12% in just two days. Currently the stock has been trading below 50 day moving average (DMA), 100 DMA and just a tad above 20 DMA of 701p, 729p and 671p respectively. Rolls-Royce has been trading 35% above the 52 weeks low and 22% below the 52 weeks high. As per the technical analysis and charting techniques, the stock seems to have consolidated at 651p and has been rising since then. However, at the current levels, the stock seems to have tough resistance and an upmove is seen only once the stock breaches 678p successfully. We would advise traders or investors to initiate fresh positions on the stock only if the stock gives a breakout above 678p, otherwise Rolls Royce shall be avoided for some time! (Read more)

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Topics: Analysis
Other Insights on Related Shares: NG..L

National Grid should be an avoid for the time being. The stock has had a massive fall in the past few months and it seems that the stock would take time to consolidate. The company announced its half yearly 2016-17 results, a few days back on 10th November. It seems that the latest results couldn’t cheer the investor’s sentiment on the D- street as the stock crashed by nearly 5%, the same day! We would throw a light on the results of the company in the later part of the article.

The stock finished trading on the London stock exchange at 898p a share on1st December. The stock has been trading below its 20 day moving average (DMA), 50 DMA and 100 DMA of 957p, 1023p and 1050p respectively.  A few days back, National Grid was trading between the channel of 928p-970p and yesterday it went below the channel too. Therefore, the bearishness would be expected to continue and the stock may head towards fresh lows also.  Another technical indicator ‘trend line’ also confirms the bearishness of the stock as the stock has been trading nonstop on the downward trend line only! Additionally, huge volumes have been seen indicating towards fresh short positions only. Hence, traders or investors shall completely avoid National Grid plc. for some time till we see any consolidation sign in the stock. (Read more)

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