Buy EMAMI LIMITED
|Buy Range||275 – 285|
|Target||320 – 330|
|Duration||15 – 18 Trading Days|
|Potential Returns^||14 – 18%|
|CP#||Idea||Buy Range||Target||StopLoss*||Duration||Potential Returns^|
|284.35||BUY||275 – 285||320 – 330||260||15 – 18 Trading Days||14 – 18%|
# CP – closing price on Feb 17, 2020
* Maintain recommended StopLoss by daily closing basis.
Once 1st target hit, reset StopLoss at 302.
^ Potential returns are calculated based on the median of buy range.
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COMPANY OVERVIEW - EMAMI LIMITED
Emami Limited, a leading FMCG manufacturing and marketing company engaged in personal care & healthcare products in India and Internationally. This flagship company of the diversified Emami Group sells over 300 different products and having brands like Navratna, BoroPlus, Fair & Handsome, Zandu Balm, Kesh King & Mentho Plus in their portfolio. Their product categories consist of hair care, skin creams, soaps and lotions, talcum powder and ayurvedic healthcare products. Their product portfolio includes Navratna Oil, Fair and Handsome, Sona Chandi Chyawanprash, Zandu Balm, Navratna Cool Talc, Himani Fast Relief, Emami Healthy & Fair, HE Deodrants, Emami Malai Kesar Cold Cream, Boroplus Antiseptic Cream, Lalima, Sardi Ja and Zandu Pancharishta.
In Q3FY20 Emami Limited has reported the Net Profit surged by 28.03% to Rs.271.30 crore on a YOY basis.
|Sectoral Index||Nifty FMCG|
EMAMI LIMITED TECHNICAL ANALYSIS (WEEKLY)
- The lows of 270 also correspond to previous intermediate lows which were tested earlier years as shown on the weekly chart, thereby making it a strong support.
- The stock has formed Bullish Harami candlestick on the daily chart near the bottom which is a bullish reversal formation. Normally this type of candlestick suggests the bull have taken control of a security’s price movement from bears.
EMAMI LIMITED TECHNICAL ANALYSIS - PRICE VS RSI
- RSI have formed positive divergence on the weekly chart, which indicates losing of selling momentum and a possible rise in trend reversal.
Note: There are three successive lower bottoms on price and three consecutive Higher bottoms on RSI indicator. Generally, after the third divergence, the probability of Price reversal becomes very high.
EMAMI LIMITED TECHNICAL ANALYSIS - PRICE VS MACD
- MACD forms Bullish divergence in weekly chart. This occurs when the price is making lower swing lows while the indicator is making higher lows.
It is meant to show that selling momentum is slowing and that the downtrend is more susceptible to a reversal.
Note: Divergence in lower time frame is not as useful as spotted in the Higher Timeframe.
Emami Limited Technical Analysis - Price vs MFI & OBV
- Money Flow Index forms bullish divergence – the price continues to trend lower, but the MFI on several occasions does not make new lows and instead creates higher highs.
- On Balance Volume (OBV) also shows positive signals as the OBV crossed above the 15 weeks Moving Average, which points out for a positive breath in the stock.
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⭐️ Ultra #Equity Advice #115: #Stock #price on support. #Bullish divergence on Weekly #RSI, #MACD and #MFI. #RiskReward ratio for this #trading is 1:2.— Goodluck Capital (@CapitalGoodluck) February 18, 2020
🔗 Original Post: https://t.co/txbJ55qAx3#technicalanalysis #tradingtips #tradingstrategy #hedgefund #GoodluckCapitalUltra