Watch Out For This Dairy Producer As It forms a Cup Without Handle Pattern.

Hatsun Agro Products stock has cleared a 22-week, 27% deep Cup Without Handle Base this week. Currently, the stock is trading around just -3% away from its ideal buy price of INR 884. The stock is worth watching at the current price level.

The stock ended the week on a bullish note. It closed 3.67% up on a 61% greater volume than the 10-week average. You want to see a strong close on heavy volume like this before initiating a position. That signals institutional buying. You would also want to see the same price volume momentum to continue in the coming weeks.

The key trend lines, 10 and 40-week moving averages are at a comfortable position. The current trends of both the averages are upward and the 10-week moving average is trending above the 40-week moving average. The current price of the stock is trading around 9.08% away from the 10-week moving average.

In the last twelve months, Hatsun Agro Products has rallied nearly 117.6% as compared to 59.4% for the Nifty500. It has a Relative Strength Rating of 60. We definitely would like see improvement in the rating. At this point we are taking a step back and focusing on the RS Line.

The Relative Strength Line of the stock is offering a lot of encouragement to investors. It has been making good progress in the last four weeks. The overall long term trend of the line is also trending upward. If Hatsun Agro Products can maintain this outperformance, it could make sense as a CANSLIM trade.

Another key part of the jigsaw is institutional sponsorship. Hatsun Agro Products has an Accumulation/Distribution Rating of ‘B+’. This represents heavy institutional buying over the past few weeks. The number of institutional sponsors and shares held by the sponsors, both increased in the last reported quarter.

On the earnings front, Hatsun Agro Products has an excellent EPS Rank of 97, which indicates consistency in earnings. The earnings and sales for the stock have grown by 22% and 8%, respectively over the past three years. Its 3-years earnings stability is 17, on a 0 to 99 scale (lower the better). Over the past five years, the earnings and sales for the stock have grown by 13% and 9%, respectively. The 5-years earnings stability is 22. The return on equity for the last reported year is 26%.

The stock belongs to industry group of Food-Dairy Products. You would still want to see some improvement in the industry group rank for the group. The current industry group rank is 77. The current price of Hatsun Agro Products is -3% off from its 52-week high price and 123% above it 52-week low price.

The stock appears on our idea lists: Trend Template – 5 Months.

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Godrej Industries Stock Is Marching Towards 52-Week High

Godrej Industries stock has broken out of a 5-week, 11% deep Flat Base 2-weeks ago. However, the stock is still offering investors an opportunity to get on board as the current price is only 0% away from the ideal buy price of INR 555.

In the last twelve months, Godrej Industries has rallied nearly 78.6% as compared to 59.4% for the Nifty500. It has a Relative Strength Rating of 65. We definitely would like to see improvement in the rating. At this point we are taking a step back and focusing on the RS Line.

The key trend lines, 10 and 40-week moving averages are at a comfortable position. The current trends of both the averages are upward and the 10-week moving average is trending above the 40-week moving average. The current price of the stock is trading around 3.89% away from the 10-week moving average.

The Relative Strength Line of the stock is offering a lot of encouragement to investors. It has been making good progress in the last four weeks. The overall long term trend of the line is also trending upward. If Godrej Industries can maintain this outperformance, it could make sense as a CANSLIM trade.

On the earnings front, Godrej Industries has an excellent EPS Rank of 89, which indicates consistency in earnings. The sales for the stock have grown by 5% over the past three years; however the earnings growth remained muted at -2%. Its 3-years earnings stability is 24, on a 0 to 99 scale (lower the better). Over the past five years, the earnings and sales for the stock have grown by 20% and 8%, respectively. The 5-years earnings stability is 29. The return on equity for the last reported year is 8%.

The stock belongs to the industry group of Diversified Operations, which is exhibiting a fair amount of strength in the current market environment. The current industry group rank is 51. The current price of Godrej Industries is -10% off from its 52-week high price and 117% above its 52-week low price.

The stock appears on our idea lists: Trend Template – 5 Months.

Recent Articles : 

Watch Out For This Dairy Producer As It forms a Cup Without Handle Pattern.

Is Valiant Organics A Good Buy?

Valiant Organics stock has broken out of a 26-week, 42% deep Cup With Handle Base 2-weeks ago. However, the stock is still worth watching as the current price is only 3% away from the ideal buy price of INR 1661.

The stock closed in red for the week, but on a lower volume. It was down -3.87% on a -15% lower volume than the 10-week average. You want to see a strong close on heavy volume before initiating a position. That signals institutional buying. But do not conclude anything just based on this week’s action. A prudent approach would be to watch the price volume momentum in the coming trading sessions.

The key trend lines, 10 and 40-week moving averages are at a comfortable position. The current trends of both the averages are upward and the 10-week moving average is trending above the 40-week moving average. The current price of the stock is trading around 8.27% away from the 10-week moving average.

In the last twelve months, Valiant Organics has rallied nearly 158.7% as compared to 59.4% for the Nifty500. It has a Relative Strength Rating of 62. We definitely would like to see improvement in the rating. At this point we are taking a step back and focusing on the RS Line.

The Relative Strength Line of the stock is offering a lot of encouragement to investors. It has been making good progress in the last four weeks. The overall long term trend of the line is also trending upward. If Valiant Organics can maintain this outperformance, it could make sense as a CANSLIM trade.

Valiant Organics stock has strong institutional support. The Accumulation/Distribution Rating of ‘A+’ represents heavy institutional buying over the past few weeks. Although the shares held by institutions dropped in the last quarter, the number of institutions holding the stock increased at the same time. This shows increasing interest among the institutions.

On the earnings front, Valiant Organics has a respectable EPS Rank of 74, which is okay but needs improvement. The earnings and sales for the stock have grown by 57% and 104%, respectively over the past three years. Its 3-years earnings stability is 50, on a 0 to 99 scale (lower the better). Over the past five years, the earnings and sales for the stock have grown by 59% and 98%, respectively. The 5-years earnings stability is 47. The return on equity for the last reported year is 44%.

The current price of Valiant Organics is -15% off from its 52-week high price and 161% above its 52-week low price. The stock belongs to the industry group of Chemicals-Specialty, which is exhibiting excellent strength in the current market environment. The current industry group rank is 28.

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Watch Out For This Dairy Producer As It forms a Cup Without Handle Pattern.

Godrej Industries Stock Is Marching Towards 52-Week High

Stock Market Update: Alembic Pharma Surges After Good Q4 Results

Today’s Action

Nifty, +1.4%; Sensex, +1.5%; Nifty Midcap, +1.3%; Nifty Smallcap, +1.7%; Model Portfolio, -1.4%

Market Pulse: Confirmed Uptrend

Today’s session was highly volatile due to the expiry of weekly options contracts. 54% of Nifty50 stocks advanced today, led by Kotak Mahindra Bank(Nse) (+8.3%) and Tata Consultancy Svs. (+5.5%). Kotak Mahindra Bank(Nse) surged as the board approved fundraising plan yesterday. On the flip side, Titan Industries (Nse) (-5.6%) and Hindustan Unilever (-2.6%) were the major decliners.

Barring Nifty FMCG (-1.4%) and PSU Bank (-0.4%), all the sectoral indices closed higher. Nifty IT (+4.4%) and Pvt Bank (+3.2%) were the major advancers. Of 2,112 stocks traded, 1,151 advanced, 638 declined, and the remaining traded flat.

We continue to be very selective about taking any fresh positions. It is important that investors don’t play all their cards at once. We would suggest adopting an investment approach where you begin with a small allocation and increase it as and when the market advances further.

Without trying to predict and decode stories, we will take what the market gives us and continue to monitor unfolding conditions. Stocks with higher relative strength and superior fundamentals can do well. Some leading stocks have sharply corrected. Wait for them to put in at least a short period of consolidation and show a constructive breakout from that range. Buying without this period of constructive behavior into a straight upmove off the bottom, puts you at a risk of drawdown.

Key News

Parag Milk Foods: The company repaid Rs 54 crore to Kotak Mahindra Bank and released its pledged shares with the bank. Remaining Rs 10 crore debt will be repaid on time according to the company. The stock locked in upper circuit of 10%.

Alembic Pharmaceuticals The company reported its March quarter results. Revenue increased 30% y/y to Rs 1,206 crore. PAT surged 65% to Rs 204 crore. The stock advanced 9.6%.

Vodafone Idea: Shares climbed over 10% as the company received accelerated payments under ‘contingent liability mechanism’ from Vodafone Group which was due in September.

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Disclaimer: Information contained herein is not and should not be construed as an offer, solicitation, or recommendation to buy or sell securities. It is for educational purposes only.