Chart Of The Day – Bharat Rasayan Hits Upper Circuit

Despite weakness in the benchmark indices, Bharat Rasayan hit the upper circuit with a 5% gain today. However, the stock is currently trading 17% above from its pivot price of Rs 6,599.00. The stock broke out of a nine-week long cup-with-handle base on July 9, 2018, but it was an eight-stage base. If you purchase a late-stage pattern (after third or fourth); its risk increases.

Bharat Rasayan_MarketSmithIndia

Chart Of The Day – Radico Khaitan Breaks Out Of Cup-With-Handle Base

Radico Khaitan got locked in upper circuit at 5% and managed to break out of a 13-week long cup with handle base. It is currently trading at 1% above its pivot price of Rs 454.40. As per the latest release by NSE, the stock continue to remain in the ASM. Despite break out, the earnings and revenue trajectory is not in favour of our investment thesis.

Radico Khaitan_MarketSmithIndia