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Kajaria Ceramics Technical Analysis #38: Buy | Target Rs 600 | Arijit Banerjee

OUR RECOMMENDATION

CMP#576.7
IdeaBUY
Buy Range571 – 576
Target600 – 620
StopLoss*545
Duration15 – 20 Trading Sessions
Potential Return^4 – 8%
CMP#IdeaBuy RangeTargetStopLoss*DurationPotential Return^
576.7BUY571 – 576600 – 62054515 – 20 Trading Sessions4 – 8%

# CMP on March 28, 2019
* Maintain recommended StopLoss by daily closing basis.
   Once 1st target hit, reset StopLoss at 588.
^ The returns are calculated based on CMP#

COMPANY OVERVIEW

Headquartered in Delhi, Kajaria Ceramics is the largest tile and floor manufacturer in India having 8 operational plants and markets its products through Kajaria Eternity World, Kajaria Galaxy, Kajaria Prime Plus Showrooms and other multi-brand dealers. Its production includes ceramic wall, floor tiles, polished vitrified tiles, glazed vitrified tiles, adhesives for ceramics and sanitary ware and faucets. The company reported a standalone net profit of Rs 65.89 crore for the quarter ended December 31, 2018, compared to Rs 53.11 crore reported during the corresponding period of 2017-18.

Stock Data
NSE CodeKAJARIACER
SectorNifty 500
52W High1003
52W Low433
Face Value10
Relative Performance_Kajaria Ceramics vs Nifty 50 Index

TECHNICAL OBSERVATIONS (WEEKLY)

  • We are witnessing the formation of ‘Higher Highs Higher Lows’ on a weekly scale after many months, which is a positive sign as per ‘Dow Theory’.
  • After a consistent downtrend in 2018, the stock price has shifted into upside bounce in December 2018. Since then the stock is moving sharply upwards.
  • Overall trend and the broader pattern are bullish and reactive throwback might be temporary in nature.
Kajaria Ceramics Weekly Chart
Kajaria Ceramics Weekly Chart

TECHNICAL OBSERVATIONS (DAILY)

  • In the daily chart, last 3 candlesticks have formed bullish formation.
  • Momentum indicator like the 14-week RSI has taken support at the 50 levels in the recent correction suggesting that the bulls have an upper hand in the stock.
Kajaria Ceramics Daily Chart
Kajaria Ceramics 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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