consolidation Archives | MarketSmith India Blog

May 31, 2021May 31, 2021

Is Berger Paints A Long Term Leader A Good Buy Now ??

Berger Paints stock has cleared a 18-week, 18% deep Consolidation Base this week. Currently, the stock is trading around just -2% away from its ideal buy price of INR 823. The stock is offering investors an opportunity to get on board at the current price.

The stock ended the week on a bullish note. It closed 1.45% up on a 159% 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 7.26% away from the 10-week moving average.

In the last twelve months, Berger Paints I has rallied nearly 62.3% as compared to 60.8% for the Nifty500. It has a Relative Strength Rating of51. 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 Berger Paints I can maintain this outperformance, it could make sense as a CANSLIM trade.

Berger Paints I stock has strong institutional support. The Accumulation/Distribution Rating of ‘A-‘ represents heavy institutional buying over the past few weeks. Although the number of institutions holding the stock dropped in the last quarter, the number of shares held by the institutions increased at the same time.

On the earnings front, Berger Paints I has an excellent EPS Rank of 94, which indicates consistency in earnings. The earnings and sales for the stock have grown by 12% and 5%, respectively over the past three years. Its 3-years earnings stability is 5, on a 0 to 99 scale (lower the better). Over the past five years, the earnings and sales for the stock have grown by 14% and 10%, respectively. The 5-years earnings stability is 14. The return on equity for the last reported year is 24%.

The stock belongs to the industry group of Chemicals-Paints. You would still want to see some improvement in the industry group rank for the group. The current industry group rank is 68. The current price of Berger Paints is -4% off from its 52-week high price and 77% above its 52-week low price.

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

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May 26, 2021May 28, 2021

Bajaj Finserv: A Long Term Leader Hits its 52-Week High.

Bajaj Finserv Ltd stock has broken out of a 10-week, 15% deep Consolidation Base 4-weeks ago. However, the stock is still worth watching as the current price is only 8% away from the ideal buy price of INR 10579.

In the last twelve months, Bajaj Finserv Ltd has rallied nearly 153.5% as compared to 59.4% for the Nifty500. It has a Relative Strength Rating of 68. 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 RS Line remains in a downtrend for the last few weeks. However, this is not unusual for a leading stock as the stock sets up base for its next leg up or at the very beginning of a new trend. At this point, the overall long term trend of the line is upward. If Bajaj Finserv Ltd can maintain a healthy upward move, it could make sense as a CANSLIM trade.

Another key part of the jigsaw is institutional sponsorship. Bajaj Finserv Ltd 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, Bajaj Finserv Ltd has an excellent EPS Rank of 97, which indicates consistency in earnings. The earnings and sales for the stock have grown by 14% and 24%, respectively over the past three years. Its 3-years earnings stability is 7, on a 0 to 99 scale (lower the better). Over the past five years, the earnings and sales for the stock have grown by 17% and 36%, respectively. The 5-years earnings stability is 6. The return on equity for the last reported year is 13%.

The stock belongs to industry group of Insurance-Brokers. You would still want to see some improvement in the industry group rank for the group. The current industry group rank is 73. The current price of Bajaj Finserv Ltd is -2% off from its 52-week high price and 185% above it 52-week low price.

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

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May 21, 2021May 21, 2021

Bajaj Finserv: Long Term Leaders Races North Towards 52-Week High.

Bajaj Finserv Ltd stock has broken out of a 10-week, 15% deep Consolidation Base 2-weeks ago. However, the stock is still worth watching as the current price is only 6% away from the ideal buy price of INR 10579.

In the last twelve months, Bajaj Finserv Ltd. has rallied nearly 132.3% as compared to 61.1% for the Nifty500. It has a Relative Strength Rating of 70. 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 Bajaj Finserv Ltd. can maintain this outperformance, it could make sense as a CANSLIM trade.

Another key part of the jigsaw is institutional sponsorship. Bajaj Finserv Ltd. 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, Bajaj Finserv Ltd. has an excellent EPS Rank of 97, which indicates consistency in earnings. The earnings and sales for the stock have grown by 14% and 24%, respectively over the past three years. Its 3-years earnings stability is 7, on a 0 to 99 scale (lower the better). Over the past five years, the earnings and sales for the stock have grown by 17% and 36%, respectively. The 5-years earnings stability is 6. The return on equity for the last reported year is 13%.

The stock belongs to the industry group of Insurance-Brokers, which is exhibiting a fair amount of strength in the current market environment. The current industry group rank is 60. The current price of Bajaj Finserv Ltd. is -3% off from its 52-week high price and 175% above its 52-week low price.

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

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May 19, 2021May 28, 2021

Is Carborundum Universal Still A Good Buy?

Carborundum Universal stock has cleared a 10-week, 23% deep Consolidation Base this week. Currently, the stock is trading around just 7% away from its ideal buy price of INR 572. The stock is worth watching at the current price level.

Carborundum Universal has been an outperforming stock as compared to the broader market. It has a strong Relative Strength Rating of 81. In the last twelve months, the stock has rallied over 169.2% as compared to 61.1% for the Nifty500.

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 Carborundum Universal can maintain this outperformance, it could make sense as a CANSLIM trade.

Another key part of the jigsaw is institutional sponsorship. Carborundum Universa lhas an Accumulation/Distribution Rating of ‘B+’. This represents heavy institutional buying over the past 13 weeks. The number of institutional sponsors and shares held by the sponsors, both increased in the last reported quarter.

On the earnings front, Carborundum Universal has an excellent EPS Rank of 84, which indicates consistency in earnings. Over the past three years, the earnings and sales for the stock have grown by 14% and 6%, respectively. The 5-years earnings stability is 7. The return on equity for the last reported year is 14%.

The current price of Carborundum Universal is -1% off from its 52-week high price and 202% above it 52-week low price. The stock belongs to industry group of Machinery-Gen Industrial, which is exhibiting excellent strength in the current market environment. The current industry group rank is 38.

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

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May 12, 2021May 12, 2021

SGX Nifty Indicates Muted Opening; Asian Paints and Lupin to Declare Q4 Results Today

At 8:00 am IST, SGX Nifty Futures was trading at 14,833, compared with Nifty’s close of 14,850 yesterday.

Market Pulse: Confirmed Uptrend

Distribution Day Count: Three

Global stock markets: Dow30, -1.4%; S&P 500, -0.9%; Nasdaq, -0.1%; Kospi, -0.8%; Nikkei, -0.7%; Shanghai Composite, +0.1%

Nifty gapped lower yesterday on weak global cues. However, it recovered around 80 points in the opening hour. After a little consolidation, it further moved higher and made a high of 14,900. From there, it reversed and closed around 14,850. As the volume was higher compared with the previous session, we considered it a distribution day.

The positive momentum remained intact in the broader market. Midcap and Smallcap indices outperformed benchmark indices. There was a mixed action on the sectoral front. Nifty PSU Bank (+1.2%), Realty (+0.3%), and Auto (+0.3%) closed higher, while Nifty Private Banks, Financial Services, and Metals closed more than 1% lower. The advance-decline ratio was in favor of advancers. Of the 2,257 stocks traded, 1,162 advanced, 757 declined, and the rest remained unchanged.

Looking forward, without trying to predict and decode stories, we will take what the market gives and continue to monitor unfolding conditions. If the index falls further, adds a distribution day, and breaches its key moving averages, we may change the market status to an Uptrend Under Pressure. Continue to trim or avoid ideas lagging and/or breaking down below major moving averages.

Key Results Today: Asian paints, Lupin (Nse), UPL, Apollo Tyres (Nse), Tata Power, Vaibhav Global and others.

Key News:

Linde India announced Q4 FY21 results yesterday. Revenue rose 16.9% y/y to Rs 441 crore. PAT came in at Rs 303 crore compared with Rs 39 crore in Q4 FY20.

Siemens announced Q4 FY21 results yesterday. Revenue increased 31.9% y/y to Rs 3,483 crore. PAT was up 90% to Rs 334 crore.

Godrej Consumer Product’s Q4 FY21 revenue grew 26.7% y/y to Rs 2,730 crore. PAT was up 59% to Rs 365 crore.

Buy Watchlist: Ramkrishna Forgings, Hindustan Zinc (Nse), PI industries, Relaxo Footwears, Tata power, Gujarat State Petronet, Apollo hosps. enterprise, Eris Lifesciences, Asian paints, Wipro (Nse), Amrutanjan health care , LUX industries, Rain industries, Apollo tricoat tubes, and Balkrishna industries

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