Heckyl Alpha Pulse

Wockhardt: Analysis of news alert and 15-minutes built-up screen

Posted on April 4, 2017

Wockhardt was in action on Monday after the drug maker said the US health regulator agreed to abridged clinical trials for antibiotic being developed by the company. Wockhardt recorded a jump of 6.46 percent in share price on Monday.

The company is developing superdrug antibiotic WCK 5222. The drug is expected to be a life-saving therapy for serious hospital acquired infections. The aforesaid US FDA approval will help Wockhardt to speed up phase III clinical trials for the drug.

News Alert:
Heckyl news engine captured company notification regarding US FDA approval immediately from the stock exchange. Our news engine issued first alert, picked from the BSE, at 11:10 am on April 3. Soon after the company announcement, the stock moved up nearly 2 percent.

Our system captured tweet regarding the US FDA approval at 11:14 am ahead of mainstream media. News alerts from mainstream media came after 11:45 am. 

[Image 1: Trending News]

[Image 2: Streaming News]

Sentiment Score:
Positive update on Wockhardt also boosted sentiment score on April 3. Heckyl sentiment score for the drug maker increased to 37 on Monday from 0 on the previous day.

[Image 3: Sentiment Movement]

15-minutes built-up screen:

Soon after the announcement, Wockhardt witnessed long built-up for 11 am to 11:15 am interval (Refer below image 4 for 15-minutes built-up screen). The stock recorded surge in fresh long positions and volume of traded contracts.

Later, the drug maker witnessed 3 long built-ups with higher fresh positions and volumes between 11:30 am to 12:15 pm, signaling uptrend for the stock may continue. In all, the stock registered long built-up for 14 intervals out of 25 intervals in a day.

A series of long built-ups along with rise in fresh positions and higher volumes signaled underlying strength for upward movement in the price.

[Image 4: 15-Minutes Built-up Screen]

Post Heckyl news alert, a day trader could have confirmed price trend by looking at 15-minutes built-up screen.

Based on the overall positive sentiment for Wockhardt, a day trader could have initiated long position in the stock futures around 12:15 pm. He could have opened long position around Rs 745 and then covered it towards day’s closing at around Rs 765.

By going long on Wockhardt futures, a trader could have made a profit of Rs 20 per unit, or Rs 12,000 on one lot of 600 units of underlying stock.

[Image 5: Share Price Chart]

The Bottom-line:

Using Heckyl news analytics, a day trader can easily spot new trading ideas. He can also confirm price trend using 15-minutes built-up screen and then implement his long or short trading strategies.

Finally, a trader can exit the trade profitably by combining the power of Heckyl news analytics and 15-minutes built-up screen.

To know more about Heckyl’s News and FNO Analytics, email us at info@heckyl.com