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Redington (India) Technical Analysis #24: Buy | Target Rs 95 | Arijit Banerjee

OUR RECOMMENDATION

CMP#82.4
IdeaBUY
Buy Range80 – 85
Target95 – 100
StopLoss*79
Duration45 – 50 Trading Sessions
Potential Return^15-21%
CMP#IdeaBuy RangeTargetStopLoss*DurationPotential Return^
82.4BUY80 – 8595 – 1007945 – 50 Trading Sessions15 – 21%

# CMP on Feb 18, 2019
* Maintain recommended StopLoss by daily closing basis.
   Once 1st target hit, reset StopLoss at 89.
^ The returns are calculated based on CMP#

COMPANY OVERVIEW

Redington India Ltd. incorporated in 1961, operating in Information Technology, supply chain and management services. The company also sells IT distribution products, which include computers and networking, printing, software, cloud and data storage solutions, security solutions and servers. The company supports servicing warranty through its 100 own services and 280 franchise service centres. In Q3FY19, Net profit jumped by 14% year-on-year to Rs 145 crores.

Stock Data
NSE CodeREDINGTON
SectorNIFTY IT
52W High158.80
52W Low64
Face Value2
Relative Performance_Redington (India) vs Nifty IT Index

TECHNICAL OBSERVATIONS (WEEKLY)

  • Recent Weekly trendline breakout since 2018, indicates positive sign.
  • Weekly closing is above 10 Weeks Exponential Moving Average.
  • Last week volumes were above its 10 week average, indicating strength in the uptrend.
Redington Weekly Chart
Redington Weekly Chart

TECHNICAL OBSERVATIONS (DAILY)

  • Daily closing is above the upper Bollinger Band (15,2).
  • ADX(14) is 38.5 and +DI is above 25 moving upwards.
  • A daily momentum indicator RSI reading is at 63.11, which points out a positive breath in the stock.
Redington Daily Chart
Redington 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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