Sell HAVELLS INDIA
|Sell Range||630 – 615|
|Target||594 – 588|
|Duration||10 – 12 Trading Days|
|Potential Returns^||5 – 6%|
|CP#||Idea||Sell Range||Target||StopLoss*||Duration||Potential Returns^|
|618.85||SELL||630 – 615||594 – 588||640||10 – 12 Trading Days||5 – 6%|
# CP – closing price on Feb 11, 2020
* Maintain recommended StopLoss by daily closing basis.
Once 1st target hit, reset StopLoss at 606.
^ Potential returns are calculated based on the median of sell range.
Havells India Limited, a fast-moving electrical goods company manufactures, sells and exports industrial and consumer electrical products in India and internationally. The company has a versatile range of products, e.g. Industrial & Domestic Circuit Protection Switchgear, Commercial & Industrial applications, Cables & Wires, Luminaires for Domestic, Commercial & Industrial applications, Modular Switches, Motors, Fans, Power Capacitors, Water Heaters and Domestic Appliances covering the household, commercial and industrial electrical needs. The company also offers appliances for cooking, brewing and food preparation etc. Havells owns prestigious brands like Havells, Crabtree and Standard and has 12 state-of-the-art manufacturing units in India. In Q3FY20, the consolidated revenue of the company drops 9.93 per cent to Rs 2,273.29 crore as against the year-ago period.
|Sectoral Index||Nifty Consumtion|
TECHNICAL OBSERVATIONS (WEEKLY)
- Technically the stock had been moving in lower top and lower bottom formation indicating negative bias.
- Overall trend and the broader pattern are bearish and reactive pullback might be temporary in nature.
- Presently, the stock price has placed near the Upper bound of a sideways range and based on historical price pattern, we are expecting price to fall off from here.
TECHNICAL OBSERVATIONS (DAILY)
- The entire corrective price action since last five months occurred in a well defined Descending Triangle pattern as highlighted in the adjoining chart.
- January 20, 2020 – Havells had made a downside breakout of the descending triangle pattern triggering a fresh Bearish trend.
- After the breakout, the Support line of the triangle pattern starts acting as a Resistance.
- The price action formed a Shooting Star candle with a long higher shadow indicating strong resistance at higher levels.
- RSI crossed below 50 – points out the continuation of downtrend in the coming sessions.