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Godfrey Phillips Technical Analysis #56: Sell | Target Rs 850 | Arijit Banerjee

OUR RECOMMENDATION

CMP#948.55
IdeaSELL
Sell Range1000 – 950
Target850 – 800
StopLoss*1050
Duration15 – 20 Trading Sessions
Potential Return^10 – 16%
CMP#IdeaSell RangeTargetStopLoss*DurationPotential Return^
948.55SELL1000 – 950850 – 800105015 – 20 Trading Sessions10 – 16%

# CMP on May 30, 2019
* Maintain recommended StopLoss by daily closing basis.
   Once 1st target hit, reset StopLoss at 900.
^ The returns are calculated based on CMP#

COMPANY OVERVIEW

Godfrey Phillips India Limited manufactures and sells cigarettes, tobacco and chewing related products in India, Middle east, Africa, Latin America under brand names Stellar, Time 7, Business Kings, Four Square, Red & White, Cavanders, Jaisalmer, Stellar, Black Jack, and Marlboro, pan masala under the Pan Vilas and RAAG Brands. In addition, the company grows tobacco, and operates convenience stores under the Twenty Four Seven name. 

Stock Data
NSE CodeGODFRYPHLP
Sectoral IndexNifty 500
52W High1209.9
52W Low640.25
Face Value2
Relative Performance_Godfrey Phillips vs Nifty 500

TECHNICAL OBSERVATIONS (WEEKLY)

  • On a Weekly chart, the stock has been trading with its downward sloping channel trend line since 2016 and it seems that it could continue with its ongoing move.
  • Recently, we have seen the weekly price breakout from medium term downward slopping trendline.
  • Overall trend and the broader pattern are bearish and any reactive pullback might be temporary. A selling from here can be a great opportunity.
Godfrey Phillips Weekly Chart
Godfrey Phillips Weekly Chart

TECHNICAL OBSERVATIONS (DAILY)

  • Recent price has closed below the Lower Bollinger Band.
  • The current price of the stock is trading below the 15 days MA.
  • Significant jump in volumes add confirmation.
Godfrey Phillips Daily Chart
Godfrey Phillips 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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