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Castrol India Technical Analysis #3: Sell | Target Rs 140 | Arijit Banerjee

OUR RECOMMENDATION

CMP#154.5
IdeaSELL
Sell Range158 – 153
Target140 – 130
StopLoss*162.5
Duration25 – 30 Trading Sessions
Potential Return^11 – 18%
CMP#IdeaSell RangeTargetStopLoss*DurationPotential Return^
154.5SELL158 – 153140 – 130162.525 – 30 Trading Sessions11 – 18%

# CMP on Nov 21, 2018
* Maintain recommended StopLoss by daily closing basis.
   Once 1st target hit, reset StopLoss at 147.
^ 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. Castrol India’s Q2 profit zooms to Rs 150 crore for the September 2018 quarter, against Rs 178 crore in the year-ago period.

Stock Data
NSE CodeCASTROLIND
Sectoral IndexNIFTY 50
52W High213.95
52W Low134.95
Face Value5
Relative Performance_Castrol India vs Nifty 50

TECHNICAL OBSERVATIONS (WEEKLY)

  • The share price of Castrol India has been a declining trend since it’s lifetime high of ₹ 272 registered during end 2014.
  • The stock price had given the breakout of the support line during mid 2018 and since then downfall accelerates further.
  • Similar to earlier historical evidence, once the price touched the falling resistance line, we hope the price will move downwards.
Castrol Weekly Chart
Castrol Weekly 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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