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Amara Raja Batteries Technical Analysis #86: Sell | Target Rs 679 | Arijit Banerjee

OUR RECOMMENDATION

CMP#719.55
IdeaSELL
Sell Range727 – 716
Target679 – 660
StopLoss*750
Duration15 – 20 Trading Sessions
Potential Return^6 – 8%
CMP#IdeaSell RangeTargetStopLoss*DurationPotential Return^
719.55SELL727 – 716679 – 66075015 – 20 Trading Sessions6 – 8%

# CMP on Sep 25, 2019
* Maintain recommended StopLoss by daily closing basis.
   Once 1st target hit, reset StopLoss at 699.
^ The returns are calculated based on CMP#

COMPANY OVERVIEW

Amara Raja Batteries limited manufactures led-acid storage batteries and sells those toTelecom, Railways, power control, solar, UPS, and Automobile industries. The company offers its batteries under Amaron, PowerZone, Power Stack, AmaronVault, and Quanta brands. The company’s net proft rose 24.67% to Rs 140.91 crore on a yearly basis

Stock Data
NSE CodeAMARAJABAT
Sectoral IndexNifty 500
52W High798.1
52W Low572.85
Face Value1
Relative Performance_Amara Raja Batteries vs Nifty 500

TECHNICAL OBSERVATIONS (WEEKLY)

  • On a weekly chart, the stock had been trading in downward ranges for the past four years (2016 – 2019).
  • Presently, the stock price has placed near the upper end of the sideways range.
  • Based on the historical price pattern, we are expecting the price to fall off from here.
Amara Raja Batteries Weekly Chart
Amara Raja Batteries Weekly Chart

TECHNICAL OBSERVATIONS (DAILY)

  • CCI has formed negative divergence on daily chart. A negative Divergence occurs when price is making a higher top at the same time a technical indicator is flat or making a lower top which indicates lossing of selling momentum and possible rise in trend reversal.
Amara Raja Batteries Daily Chart
Amara Raja Batteries 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

This research analysis is prepared by Arijit Banerjee, CMT, CFTe. An engineering graduate developed an early interest in Trading since the age of 20. He is a Chartered Market Technician (CMT) accredited by CMT Association USA, the leading global authority of Technical Analysis and also has been honoured by Certified Financial Technician (CFTe) from the International Federation of Technical Analysts (IFTA), USA. His contribution to the market research was recognized by SEBI, the Regulatory Body of Indian financial market and given him the registration number INH300006582 as a Research Analyst. Over the years, he has gained experience in Technical Analysis with a demonstrated history of working in different asset classes. Himself as a trader, he has trained and continues training novice and experienced traders to become successful, confident and profitable in the financial market.

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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