|Sell Range||730 – 716|
|Target||672 – 660|
|Duration||20 – 25 Trading Sessions|
|Potential Return^||6 – 8%|
|CMP#||Idea||Sell Range||Target||StopLoss*||Duration||Potential Return^|
|716.9||SELL||730 – 716||672 – 660||737||20 – 25 Trading Sessions||6 – 8%|
# CMP on Oct 18, 2019
* Maintain recommended StopLoss by daily closing basis.
Once 1st target hit, reset StopLoss at 694.
^ The returns are calculated based on CMP#
Godrej Consumer Limited engaged in the manufacturing and distributing of personal and household care products in India, Africa, Indonesia and internationally. The company offers hair colours, liquid detergents, soaps, air freshners, skin care, fabric care, hygiene and dry hair products. Established in 1897, the company has few popular brands in it’s portfolio e.g. Godrej Expert, Cinthol, Godrej No. 1, Hit, Godrej Ezee etc. The consolidated revenue drops 5.92% to Rs 2,330.59 crore as against the year-ago period.
|Sectoral Index||Nifty FMCG|
TECHNICAL OBSERVATIONS (WEEKLY)
- Attached weekly timeframe chart of Godrej Consumer signalling that the stock price was moving in a downward slopping larger consolidation pattern in the last many months and is currently near the upper boundary of this consolidation range.
- We are expecting the price to move higher after an upside breakout or a sharp downturn after hitting the resistance.
- Since the overall trend is bearish, we can short the stock here as the level mentioned above which can have a good risk-reward ratio.
TECHNICAL OBSERVATIONS (DAILY)
- On the daily chart, the recent high coincides with earlier high as indicated on the chart.
- The daily price chart shows a Shooting Star candlestick formation today, which indicates bullish trend may be reversing and it may be good time to enter into a short position.
- ROC has formed negative divergence, where the price is making higher high, but the ROC does not. When such disagreement is spotted, there is a higher probability of a price reversal.