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Balkrishna Industries Technical Analysis #4: Sell | Target Rs 900 | Arijit Banerjee

OUR RECOMMENDATION

CMP#957.75
IdeaSELL
Sell Range990 – 950
Target900 – 875
StopLoss*1010
Duration15 – 20 Trading Sessions
Potential Return^6 – 9%
CMP#IdeaSell RangeTargetStopLoss*DurationPotential Return^
957.75SELL990 – 950900 – 875101015 – 20 Trading Sessions6 – 9%

# CMP on Nov 28, 2018
* Maintain recommended StopLoss by daily closing basis.
   Once 1st target hit, reset StopLoss at 929.
^ The returns are calculated based on CMP#

COMPANY OVERVIEW

Founded in 1987 as a bicycle tyre maker, this Mumbai based tire and tube manufacturing company now serves OEM across the country and 130 nations worldwide. Their products are mainly designed for industrial, agricultural, construction, port and earthmover, mining, forestry, lawn and all-terrain vehicles (ATV). The majority stakes owned by Arvind Poddar and his family.

Stock Data
NSE CodeBALKRISIND
Sectoral IndexNIFTY AUTO
52W High1453.55
52W Low922.7
Face Value2
Relative Performance_Balkrishna Industries vs Nifty Auto Index

TECHNICAL OBSERVATIONS (WEEKLY)

  • Stock had given downside breakout from the Broadening Triangle pattern with incremental volumes.
  • Stock Price is below the true crucial Weekly Resistance zone 1005-975. A further downfall is expected from here.
Balkrishna Industries Weekly Chart
Balkrishna Industries Weekly Chart

TECHNICAL OBSERVATIONS (DAILY)

  • The stock has formed Bearish Engulfing candlestick which is a Bearish reversal formation. Normally this type of candlestick suggests the Bear has taken control of a security’s price movement.
  • ROC is below zero line and falling, it shows that downtrend is increasing its speed.
Balkrishna Industries Daily Chart
Balkrishna Industries Daily Chart

MONEY MANAGEMENT AND TRADING RULES

1)  It’s advisable not to enter/exit beyond the recommended range.
2)  Strictly follow the StopLoss as mentioned. Honour it.
3)  Use trailing StopLoss to retain profits.
4)  Diversify trading capital into our other technical recommendations.
5)  Risk only the money what you can afford to lose. Hedge accordingly.

ANALYST SUMMARY

The research analysis is prepared by Arijit Banerjee, CMT, CFTe. He is a veteran trader and an active investor having in-depth knowledge in financial market research, advanced technical analysis, market cycle, algorithmic trading and portfolio management. Arijit is a Chartered Market Technician (CMT) accredited by CMT Association USA, the leading global authority of Technical Analysis and has been honoured by Certified Financial Technician (CFTe) from the International Federation of Technical Analysts, USA. SEBI, the regulatory body of Indian financial market also recognizes him as a Research Analyst (INH300006582).

Disclosure

The views expressed herein are based solely on information available publicly/internal data/other sources believed to be reliable, but is not necessarily all-inclusive and is not guaranteed as to accuracy. The recommendations provided herein is solely for informational purposes and are not intended to be and must not be taken alone as the basis for an investment/trading decision. Trading and investing are subject to market risk and the securities discussed and opinions expressed herein may not be suitable for all investors. To read the full disclosure, please click here.

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