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United Spirits Technical Analysis #6: Buy | Target Rs 715 | Arijit Banerjee

OUR RECOMMENDATION

CMP#672.4
IdeaBUY
Buy Range650 – 670
Target715 – 740
StopLoss*620
Duration20 – 25 Trading Sessions
Potential Return^6 – 10%
CMP#IdeaBuy RangeTargetStopLoss*DurationPotential Return^
672.4BUY650 – 670715 – 74062020 – 25 Trading Sessions6 – 10%

# CMP on Nov 30, 2019
* Maintain recommended StopLoss by daily closing basis.
   Once 1st target hit, reset StopLoss at 694.
^ 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 69% jump in net profit at Rs 258.70 crore in FY19; revenue up 14.7%.

Stock Data
NSE CodeMCDOWELL-N
Sectoral IndexNIFTY 500
52W High801.03
52W Low438.2
Face Value2
Relative Performance_United Spirits vs Nifty 500

TECHNICAL OBSERVATIONS (WEEKLY)

  • After a consistent downtrend in the last 11 months, the stock price has shifted into a sharp upside bounce in this week.
  • This breakout can be a signal of the conclusion of the downtrend.
United Spirits Weekly Chart
United Spirits Weekly Chart

TECHNICAL OBSERVATIONS (DAILY)

  • Higher Tops and Higher Bottoms at Daily Charts.
  • Price has been holding above the upward sloping trend line.
  • ADX and +DI above 20 indicate buying momentum and probable further rise.
United Spirits Daily Chart
United Spirits 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

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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