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Godrej Industries Technical Analysis #44: Sell | Target Rs 468 | Arijit Banerjee

OUR RECOMMENDATION

CMP#571.05
IdeaSELL
Sell Range525 – 515
Target468 – 450
StopLoss*560
Duration35 – 40 Trading Sessions
Potential Return^9 – 13%
CMP#IdeaSell RangeTargetStopLoss*DurationPotential Return^
517.05SELL525 – 515468 – 45056035 – 40 Trading Sessions9 – 13%

# CMP on April 18, 2019
* Maintain recommended StopLoss by daily closing basis.
   Once 1st target hit, reset StopLoss at 493.
^ The returns are calculated based on CMP#

COMPANY OVERVIEW

Based in Mumbai, Godrej Industries Limited was founded in 1988 manufactures and sells chemicals, oils, agricultural products. The company also works in real estate development, Finance & Investments and Others. For the quarter ended 31-12-2018, the company has reported a consolidated sales of Rs 2473.24 Crore, down -5.74% from last quarter sales of Rs 2,624.02 crore. Company has reported a Net profit after tax of -22.49 Crore in the latest quarter.

Stock Data
NSE CodeGODREJIND
SectorNifty 500
52W High657.6
52W Low434.5
Face Value1
Relative Performance_Godrej Industries vs Nifty50

TECHNICAL OBSERVATIONS (WEEKLY)

  • The stock hit a fresh all-time high of around 700 in July 2017. Since then we are witnessing the formation of ‘Lower Highs Lower Lows’, which is a negative sign as per ‘Dow Theory’.
  • Overall trend and the broader pattern are bearish and past historical evidence shows every reactive pullback might be temporary in nature.
  • On a weekly chart, the stock has been trading with its downward sloping trend line since last many months and it seems that it could continue with its ongoing move.
Godrej Industries Weekly Chart
Godrej Industries Weekly Chart

TECHNICAL OBSERVATIONS (DAILY)

  • The stock has given downward breakout from a descending triangle pattern.
  • The stock is trading well below its EMA-5, EMA-10 & EMA -20, indicating a strong negative trend for the stock.
Godrej Industries Daily Chart
Godrej 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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