|Sell Range||480 – 470|
|Target||433 – 410|
|Duration||35 – 40 Trading Sessions|
|Potential Return^||8 – 13%|
|CMP#||Idea||Sell Range||Target||StopLoss*||Duration||Potential Return^|
|471.55||SELL||480 – 470||433 – 410||508||35 – 40 Trading Sessions||8 – 13%|
# CMP on April 09, 2019
* Maintain recommended StopLoss by daily closing basis.
Once 1st target hit, reset StopLoss at 452.
^ The returns are calculated based on CMP#
Kaveri Seeds limited produces, processes and markets hybrid seeds of field and vegetable crops. The company’s product categories include corn, sunflower, cotton, rice, tomatoes, watermelon, gourds, and brinjal. Founded in 1976, the company earns the majority of its revenue from India. The company posts a 69% decline in net profit at Rs 3.65 crore in Q3FY19.
TECHNICAL OBSERVATIONS (WEEKLY)
- Since August 2016 till mid February of the current year, the entire corrective price action occurred in a well defined Triangle pattern as highlighted in the adjoining chart.
- On the weekly chart, Kaveri Seed has broken out the downside of a Symmetrical triangle pattern with very high volume triggering a fresh bearish trend.
- After the strong breakout rally, the stock is seen moving towards the breakout area of 470-480 zone over the last six weeks. It highlights the change of polarity principle and signals a resistance building process that will act as a threshold for the next down move.
TECHNICAL OBSERVATIONS (DAILY)
- ROC have formed negative divergence on the daily chart, which indicates lossing of selling momentum and possible fall with a trend reversal.