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Exide #19: Sell | Target Rs 212 | Arijit Banerjee

OUR RECOMMENDATION

CMP#230.15
IdeaSELL
Sell Range232 – 227
Target216 – 209
StopLoss*243
Duration15 – 20 Trading Sessions
Potential Return^6 – 9%
CMP#IdeaSell RangeTargetStopLoss*DurationPotential Return^
230.15SELL232 – 227216 – 20924315 – 20 Trading Sessions6 – 9%

# CMP on Jan 25, 2019
* Maintain recommended StopLoss by daily closing basis.
   Once 1st target hit, reset StopLoss at 223.
^ The returns are calculated based on CMP#

COMPANY OVERVIEW

Having seven factories across the country and subsidiaries in the UK, Singapore and Sri Lanka, Exide is a led acid battery manufacturer with a vast product range of 2.5 Ah to 20,600 Ah capacity. Incorporated in the year 1947, they provide power storage solutions for automotive, defense, telecom, mining, railways and information technology. In 2018, Exide Industries launched three new range of automotive batteries – Epiq, Exide Gold and Exide Cabby. The battery manufacturer’s net profit dropped by 42% to 155 Cr in Q3FY19.

Stock Data
NSE CodeEXIDEIND
SectorNifty 500
52W High1003
52W Low433
Face Value10
Relative Performance_Exide Industries vs Nifty Index

TECHNICAL OBSERVATIONS (WEEKLY)

  • Head & Shoulder pattern formation in the weekly chart.
  • The stock formed well-defined Head & Shoulder Pattern over the last 6 months and the breakout below the Neckline shows further bearishness.
Exide Head & Shoulder Breakout_Weekly
Exide Head & Shoulder Breakout_Weekly

TECHNICAL OBSERVATIONS (DAILY)

  • Technical indicators are currently giving negative signals as the stock trades below the short term (10 day EMA) and medium term (20 day EMA) moving averages.
  • Last 3 months support line was broken yesterday and the price was moving further downwards.
  • Momentum indicators like the 14-week RSI are below 30 shows selling momentum and probable further fall.
Exide Daily chart
Exide 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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