Sterlite Technologies Limited (STRTECH.NS) has ended the week in the red, yielding negative results for the shares at they ticked -1.07%. In taking a look at recent performance, we can see that shares have moved -11.78% over the past 4-weeks, 3.89% over the past half year and -2.75% over the past full year.

Most investors are aware that not all stocks will be performing well at the same time. Different stocks may have alternate reactions to various economic factors, world events, and business happenings. When one stock is up, another one might be on the way down. Keeping the portfolio full of names from different sectors can help offset imbalances when one stock or sector may be performing poorly while another stock or sector is doing well. Diversification is typically recommended with all types of investing. Many factors may come into play when trying to pick the right stocks to own. Investors may want to figure out how much they are willing to risk, and what kinds of returns they are looking for. Many beginner investors may not be comfortable picking stocks on their own. Seeking professional advice may be one avenue to pursue, but it is usually a good idea to know exactly what holdings are in the portfolio at all times, as markets can move quickly and without notice. 

Traders may be narrowing in on the ATR or Average True Range indicator when reviewing technicals. At the time of writing, Sterlite Technologies Limited (STRTECH.NS) has a 14-day ATR of 10.28. The average true range indicator was created by J. Welles Wilder in order to measure volatility. The ATR may assist traders with figuring out the strength of a breakout or reversal in price. It is important to note that the ATR was not designed to determine price direction or to predict future prices.

Some investors may find the Williams Percent Range or Williams %R as a helpful technical indicator. Presently, Sterlite Technologies Limited (STRTECH.NS)’s Williams Percent Range or 14 day Williams %R is resting at -70.57. Values can range from 0 to -100. A reading between -80 to -100 may be typically viewed as strong oversold territory. A value between 0 to -20 would represent a strong overbought condition. As a momentum indicator, the Williams R% may be used with other technicals to help define a specific trend.

Taking a peek at some Moving Averages, the 200-day is at 324.16, the 50-day is 328.67, and the 7-day is sitting at 290.51. The moving average is a popular tool among technical stock analysts. Moving averages are considered to be lagging indicators that simply take the average price of a stock over a specific period of time. Moving averages can be very useful for identifying peaks and troughs. They may also be used to help the trader figure out proper support and resistance levels for the stock.

Investors may use multiple technical indicators to help spot trends and buy/sell signals. Presently, Sterlite Technologies Limited (STRTECH.NS) has a 14-day Commodity Channel Index (CCI) of -50.75. The CCI was developed by Donald Lambert. The assumption behind the indicator is that investment instruments move in cycles with highs and lows coming at certain periodic intervals. The original guidelines focused on creating buy/sell signals when the reading moved above +100 or below -100. Traders may also use the reading to identify overbought/oversold conditions.

The Average Directional Index or ADX is a popular technical indicator designed to help measure trend strength. Many traders will use the ADX in combination with other indicators in order to help formulate trading strategies. Presently, the 14-day ADX for Sterlite Technologies Limited (STRTECH.NS) is 24.47. In general, an ADX value from 0-25 would indicate an absent or weak trend. A value of 25-50 would indicate a strong trend. A value of 50-75 would signal a very strong trend, and a value of 75-100 would indicate an extremely strong trend. The ADX alone was designed to measure trend strength. When combined with the Plus Directional Indicator (+DI) and Minus Directional Indicator (-DI), it can help decipher the trend direction as well.

Knowledgeable investors are typically better prepared when deciding what stocks to buy. Having a deeper understanding of companies, sectors, and investment concepts may prove to be a huge boost to the investor’s confidence and profits. Savvy investors generally know how to stick with an investing plan but are able to adapt to any unforeseen market movements. Building lasting wealth is usually at the forefront of many investor strategies. It may be nearly impossible to find explanations for unusual market activity until long after everything has shifted and settled. Being able to take the punches from everyday market happenings may help the investor stay focused on the long-term objectives. As long as there are markets, there will always be news swirling around. There will constantly be talk of the bulls and the bears, market corrections, sell-offs, and such. Being able to wade through the headlines to get down to the nitty-gritty important stuff is where the market masters make their living. Being able to focus on the right information can be a gigantic boost to the health of the individual investor’s portfolio. Finding out what works and what doesn’t can also play big part in coming out on top in the stock market. Although it may not be an easy endeavor, it may be attainable with the right amount of perseverance and dedication.

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