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United Spirits Technical Analysis #92: Buy | Target Rs 681 | Arijit Banerjee

CMP#621.5
IdeaBUY
Buy Range617 – 625
Target681 – 689
StopLoss*565
Duration20 – 25 Trading Sessions
Potential Return^10 – 11%
CMP#IdeaBuy RangeTargetStopLoss*DurationPotential Return^
621.5BUY617 – 625681 – 68956520 – 25 Trading Sessions10 – 11%

# CMP on Oct 10, 2019
* Maintain recommended StopLoss by daily closing basis.
   Once 1st target hit, reset StopLoss at 651.
^ The returns are calculated based on CMP#

COMPANY OVERVIEW

United Spirits engaged in the business of manufacture, purchase and sale of alcoholic beverages which includes whisky, vodka and rum segments, and caters to various consumers through luxury, premium, prestige and popular spirits categories. The company posts a 26.07% jump in net profit at Rs 182.30 crore in Q1FY20; revenue up 9.27% against the year ago period.

Stock Data
NSE CodeMCDOWELL-N
Sectoral IndexNifty 500
52W High676.6
52W Low496.8
Face Value2
Relative Performance_United Spirits vs Nifty 500

TECHNICAL OBSERVATIONS (WEEKLY)

  • On the weekly chart, the stock has been moving upwards within a range in the last few months.
  • Presently, the stock price has placed near the lower end of this range and also in the process to reach the upper bound of this trading zone.
United Spirits Weekly Chart
United Spirits Weekly Chart

TECHNICAL OBSERVATIONS (DAILY)

  • Current closing is just above support line which was tested earlier. Based on the historical chart pattern, we may expect a price surge from here.
  • It is trading above 15 days EMA of On Balance Volume, indicating the stock is ready for an up move.
United Spirits Daily Chart
United Spirits Daily Chart

CONCLUSION - United Spirits SHARE PRICE FORECAST

Based on our positional trading calls, United Spirits share price target will be 617 – 625 in the next few days.

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

The research analysis is prepared by Arijit Banerjee, CMT, CFTe. He is a veteran trader and an active investor having in-depth knowledge in financial market research, advanced technical analysis, market cycle, algorithmic trading and portfolio management. Arijit is a Chartered Market Technician (CMT) accredited by CMT Association USA, the leading global authority of Technical Analysis and has been honoured by Certified Financial Technician (CFTe) from the International Federation of Technical Analysts, USA. SEBI, the regulatory body of Indian financial market also recognizes him as a Research Analyst (INH300006582).

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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