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Castrol India Technical Analysis #71: Buy | Target Rs 137 | Arijit Banerjee

OUR RECOMMENDATION

CMP#131
IdeaBUY
Buy Range125 – 128
Target137 – 139
StopLoss*123
Duration15 – 20 Trading Sessions
Potential Return^5 – 6%
CMP#IdeaBuy RangeTargetStopLoss*DurationPotential Return^
131BUY125 – 128137 – 13912315 – 20 Trading Sessions5 – 6%

# CMP on July 17, 2019
* Maintain recommended StopLoss by daily closing basis.
   Once 1st target hit, reset StopLoss at 134.
^ The returns are calculated based on CMP#

COMPANY OVERVIEW

Headquartered in Mumbai, Castrol India owns around 48% market share in the overall Indian lubricant market and is the largest manufacturer of automotive and industrial lubricants in the Indian lubricant market. The company engages in manufacturing and selling engine oils, lubricants, transmission fluids, antifreeze products, coolants, greases for motorcycles, buses and trucks. Their nonautomotive product segment serves aerospace, marines, energy, machinery, metals and mining sectors.

Stock Data
NSE CodeCASTROLIND
Sectoral IndexNifty 500
52W High177.8
52W Low123.25
Face Value5
Relative Performance_Castrol vs Nifty 500

TECHNICAL OBSERVATIONS (WEEKLY)

  • As we see in the weekly chart the lows around also correspond to previous intermediate lows which were tested in the year 2011 and 2012, thereby making it strong support.
Castrol India Weekly Chart
Castrol India Weekly Chart

TECHNICAL OBSERVATIONS (DAILY)

  • The stock extended its northward journey post a crucial break-out in Daily Chart.
  • Recent closing above 15 days Moving average which considered bullish and helps to propel further upside movement.
  • Price is trading near the Upper Bollinger Band which shows bullishness.
Castrol India Daily Chart
Castrol India 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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