Happy Easter, and the start of all things bright, good and desirable!
To determine how IPL behaves with respect to the index, one can plot the Relative Strength or Comparative Strength of the stock to the index and study when it outperforms or under performs or is correlated to the underlying strength of the market viz a viz the index.
However, and since you wanted a view of IPL, I thought I'll address this part of your question, rather than on the performance with respect to the index. So the question I'm trying to address is: "What is probably the direction of IPL in the near term?"
By charting the golden spiral or fib vortex of IPL by putting the centre at C, a spiral at B and a spoke going through point A, we have the following chart:
As you can see, the price of IPL tends to follow along the spokes and spirals as shown in the chart. We take special note that we are now hogging the outer spiral at F, with the spiral boundary upwards.
At the same time, I've plotted the long term cycle and short term cycle of IPL, with the blue dots showing where we are at the last market close. Note that the direction of the cycle after the dots are both pointing generally upwards, suggesting both the long term and short term cycles of IPL are generally upwards ie. if prices pullback, they are dips within an uptrend and are actually buying points on the dips.
Next, we project the cycle top with a vertical line and find that this projected top may possibly fall at points G or H. Consider one important point- you can see that the spoke A-C-G had been stiff resistance offered to the price movement of IPL, so that prices have not been able to break above it in the past. So we will need to watch whether price can break through G and moves to H or whether it will pullback again at G, which represents the projected cycle top in time.
The time window for this cycle top is marked by a short horizontal bar above the forecast short term cycle top, so that you can gauge the time and be especially alert near to that time window:)
Hope this helps...please read the disclaimer below my signature line...and of course, Happy Easter again!
