Kaveri Seed Technical Analysis #42: Sell | Target Rs 433 | Arijit Banerjee


Sell Range480 – 470
Target433 – 410
Duration35 – 40 Trading Sessions
Potential Return^8 – 13%
CMP#IdeaSell RangeTargetStopLoss*DurationPotential Return^
471.55SELL480 – 470433 – 41050835 – 40 Trading Sessions8 – 13%

# CMP on April 09, 2019
* Maintain recommended StopLoss by daily closing basis.
   Once 1st target hit, reset StopLoss at 452.
^ The returns are calculated based on CMP#


Kaveri Seeds limited produces, processes and markets hybrid seeds of field and vegetable crops. The company’s product categories include corn, sunflower, cotton, rice, tomatoes, watermelon, gourds, and brinjal.  Founded in 1976, the company earns the majority of its revenue from India. The company posts a 69% decline in net profit at Rs 3.65 crore in Q3FY19.

Stock Data
SectorNifty 500
52W High660.7
52W Low368.8
Face Value2
Relative Performance_Kaveri Seed vs Nifty 50


  • Since August 2016 till mid February of the current year, the entire corrective price action occurred in a well defined Triangle pattern as highlighted in the adjoining chart. 
  • On the weekly chart, Kaveri Seed has broken out the downside of a Symmetrical triangle pattern with very high volume triggering a fresh bearish trend.
  • After the strong breakout rally, the stock is seen moving towards the breakout area of 470-480 zone over the last six weeks. It highlights the change of polarity principle and signals a resistance building process that will act as a threshold for the next down move.
Kaveri Seed Weekly Chart
Kaveri Seed Weekly Chart


  • ROC have formed negative divergence on the daily chart, which indicates lossing of selling momentum and possible fall with a trend reversal.
Kaveri Seed Daily Chart
Kaveri Seed Daily Chart


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.


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).


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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