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Asian Paints Technical Analysis #43: Sell | Target Rs 1350 | Arijit Banerjee

OUR RECOMMENDATION

CMP#1409.85
IdeaSELL
Sell Range1450 – 1410
Target1350 – 1300
StopLoss*1475
Duration25 – 30 Trading Sessions
Potential Return^4 – 8%
CMP#IdeaSell RangeTargetStopLoss*DurationPotential Return^
1409.85SELL1450 – 14101350 – 1300147525 – 30 Trading Sessions4 – 8%

# CMP on Apr 10, 2019
* Maintain recommended StopLoss by daily closing basis.
   Once 1st target hit, reset StopLoss at 1380.
^ The returns are calculated based on CMP#

COMPANY OVERVIEW

Founded in 1942, Asian Paints manufactures, sells and distributes paints and coatings for decorative and industrial use in India. Headquartered in Mumbai, the company operates in over 20 countries and has over 30 manufacturing facilities, servicing consumers in over 65 countries. Asian paints Q3 profit zooms to Rs 631.73 crore for the December 2018 quarter, against Rs 550.69 crore in the year-ago period.

Stock Data
NSE CodeASIANPAINT
Sectoral IndexNIFTY 50
52W High1529.85
52W Low1118
Face Value1
Relative Performance_Asian Paints vs Nifty 50 Index

TECHNICAL OBSERVATIONS (DAILY)

  • The stock registered a resolute breakout of the past five months suggests a robust downside movement.
  • The breakout is associated with Gap and Volumes during the last two days are above its 10 days average, indicating strength in the downtred.
  • The closing is below 5 EMA and 10 EMA crossover on daily charts.
Asian Paints Daily Chart
Asian Paints 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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