Share on facebook
Share on twitter
Share on linkedin
Share on whatsapp
Share on telegram
Share on email

Godfrey Phillips Technical Analysis #56: Sell | Target Rs 850 | Arijit Banerjee

OUR RECOMMENDATION

CMP#948.55
IdeaSELL
Sell Range1000 – 950
Target850 – 800
StopLoss*1050
Duration15 – 20 Trading Sessions
Potential Return^10 – 16%
CMP#IdeaSell RangeTargetStopLoss*DurationPotential Return^
948.55SELL1000 – 950850 – 800105015 – 20 Trading Sessions10 – 16%

# CMP on May 30, 2019
* Maintain recommended StopLoss by daily closing basis.
   Once 1st target hit, reset StopLoss at 900.
^ The returns are calculated based on CMP#

COMPANY OVERVIEW

Godfrey Phillips India Limited manufactures and sells cigarettes, tobacco and chewing related products in India, Middle east, Africa, Latin America under brand names Stellar, Time 7, Business Kings, Four Square, Red & White, Cavanders, Jaisalmer, Stellar, Black Jack, and Marlboro, pan masala under the Pan Vilas and RAAG Brands. In addition, the company grows tobacco, and operates convenience stores under the Twenty Four Seven name. 

Stock Data
NSE CodeGODFRYPHLP
Sectoral IndexNifty 500
52W High1209.9
52W Low640.25
Face Value2
Relative Performance_Godfrey Phillips vs Nifty 500

TECHNICAL OBSERVATIONS (WEEKLY)

  • On a Weekly chart, the stock has been trading with its downward sloping channel trend line since 2016 and it seems that it could continue with its ongoing move.
  • Recently, we have seen the weekly price breakout from medium term downward slopping trendline.
  • Overall trend and the broader pattern are bearish and any reactive pullback might be temporary. A selling from here can be a great opportunity.
Godfrey Phillips Weekly Chart
Godfrey Phillips Weekly Chart

TECHNICAL OBSERVATIONS (DAILY)

  • Recent price has closed below the Lower Bollinger Band.
  • The current price of the stock is trading below the 15 days MA.
  • Significant jump in volumes add confirmation.
Godfrey Phillips Daily Chart
Godfrey Phillips 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.

Enjoy this recommendation?
Share with your friends
Share on facebook
Share on twitter
Share on linkedin
Share on whatsapp
Share on telegram
Share on email
Your return could be much more

PROFITABLE!

access our premium recommendations

Equity Advice

1 Month / 3 Months / 6 Months / 1 Year
3000 Per Month
  • at least 7-8 trades/ month
  • indian stocks + major index
  • short to medium term trade
  • ...and other exclusive benefits
Ultra
Subscribe With Us
Get free Trading tips and Investment advice

We respect your privacy.

You cannot copy content of this page