Buy GODFREY PHILLIPS
|Buy Range||1215 – 1235|
|Target||1335 – 1350|
|Duration||10 – 12 Trading Days|
|Potential Return^||9 – 10%|
|CP#||Idea||Buy Range||Target||StopLoss*||Duration||Potential Return^|
|1256.3||BUY||1215 – 1235||1335 – 1350||1200||10 – 12 Trading Days||9 – 10%|
# CP – closing price on Dec 17, 2019
* Maintain recommended StopLoss by daily closing basis.
Once 1st target hit, reset StopLoss at 1296.
^ Potential returns are calculated based on the median of the buy range.
Godfrey Phillips India Limited manufactures and sells cigarettes, tobacco and chewing related products in India, Middle east, Africa, Latin America under brand names Stellar, Time 7, Business Kings, Four Square, Red & White, Cavanders, Jaisalmer, Stellar, Black Jack, and Marlboro, pan masala under the Pan Vilas and RAAG Brands. Besides, the company grows tobacco and operates convenience stores under the Twenty Four Seven name. Godfrey Phillips posts 57% jump in net profit at Rs 113.54 crore in FYQ220 on quarterly basis; revenue up 12.7%
|Sectoral Index||Nifty 500|
TECHNICAL OBSERVATIONS (WEEKLY)
- On the weekly chart, the stock had given a breakout in the middle of November 2019. This upside breakout happens from a rangebound move in which price had been trading for more than last three years.
- Later, we had seen a robust upside price movement above 10% of the breakout zone, which suggests this is a valid breakout.
TECHNICAL OBSERVATIONS (DAILY)
- The last closing price holds above the support line as drawn in the daily chart.
- Price has crossed above the downtrend line from the last ten days. The price action indicates
- The overall price action shows an earlier opportunity to enter in this trade with an excellent Risk:Reward ratio (1:4).