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Havells India Technical Analysis: Sell | Target Rs 594 | Arijit Banerjee

OUR RECOMMENDATION

  Sell    HAVELLS INDIA  

CP#618.85
IdeaSELL
Sell Range630 – 615
Target594 – 588
StopLoss*640
Duration10 – 12 Trading Days
Potential Returns^5 – 6%
CP#IdeaSell RangeTargetStopLoss*DurationPotential Returns^
618.85SELL630 – 615594 – 58864010 – 12 Trading Days5 – 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.

COMPANY OVERVIEW

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.

Stock Data
NSE CodeHAVELLS
Sectoral IndexNifty Consumtion
52W High806.85
52W Low585.5
Face Value1
Relative Performance_Havells vs Nifty India Consumption Index

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.
Havells Technical Analysis - Weekly Chart
Havells Technical Analysis - Weekly Chart

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.
Havells Technical Analysis - Daily Chart
Havells Technical Analysis - Daily Chart

LIVE UPDATE - POSITION & ACTIVITIES

Sell Havells India | Expected Profit 5-6% | Arijit Banerjee by GoodluckCapital on TradingView

Sell Havells India | Expected Profit 5-6% | Arijit Banerjee by GoodluckCapital on TradingView

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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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