Technical Pick of the Week #12 - Grasim Industries
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Aman Baheti
Price Action Analysis:
The stock closed at an all-time high on Friday (28th June). It gave a multi-week breakout and settled above INR 2,600 level. The resistance zone of INR 2,550-2,600 was breached convincingly with above average volumes.
Moving Average:
The stock is trading above the 50 EMA for the past 12 months. It retraced the 50 EMA and breached 100 EMA on the election results day. The stock recovered and bounced strongly above both EMAs. The stock seems in a positive momentum and can potentially trade above the 50 EMA for short term.
Bollinger Bands:
The Bollinger band expanded in the past two weeks and stock broke the upper band. A retracement around INR 2,550 level can be a god buy-on-dip opportunity for short term trading. INR 2,450-2,500 zone can act as a support zone.
Mool’s Outlook:
We anticipate a target of INR 3,000 in the stock in the next 6-8 months, which reflects a 12% upside in the stock.
Stop Loss should be maintained at 2,500
Disclaimer:
Mool Capital Limited is a SEBI Registered Research Analyst having registration no. INH000012449. This report has been prepared by Mool Capital Pvt. Ltd. and is solely for information of the recipient only. The report must not be used as a singular basis of any investment decision. The views herein are of a general nature and do not consider the risk appetite or the particular circumstances of an individual investor; readers are requested to take professional advice before investing. This document is not, and should not, be construed as an offer or solicitation of an offer, to buy or sell any securities or other financial instruments. This report should not be construed as an invitation or solicitation to do business with Mool Capital. Mool Capital and its affiliated company(ies), their directors and employees may; (a) from time to time, have a long or short position in, and buy or sell the securities of the company(ies) mentioned herein or (b) be engaged in any other transaction involving such securities and earn brokerage or other compensation or act as a market maker in the financial instruments of the company(ies) discussed herein or act as an advisor or lender/borrower to such company(ies) or may have any other potential conflict of interests with respect to any recommendation and other related information and opinions.
Grasim Industries Limited is the flagship company of the Aditya Birla group, it ranks amongst India's largest private sector companies.
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