MARICO

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I bought 200 shares of Marico at Rs 340. Af­ter my pur­chase, the stock wit­nessed a down­fall and, at present, it is hov­er­ing around my pur­chase price. So what should I do now?

- Anil Singh

HOLD WITH THE STOP LOSS OF RS 330 FOR EX­PECTED TAR­GET OF RS 380-390

Marico is cur­rently trad­ing at Rs 346.50. Its 52-week high/low stand at Rs 387.85/Rs 282.85 made on Au­gust 24, 2018 and Oc­to­ber 11, 2018, re­spec­tively. Af­ter hit­ting its 52-week high, the stock re­sisted near the long-term chan­nel re­sis­tance and, there­after, the stock cor­rected sharply. The cor­rec­tion halted near about 61.8 per cent re­trace­ment level of the en­tire up­move from De­cem­ber 2016 to Au­gust, 2018. As on week­end of Novem­ber 2, 2018, the stock on the weekly chart formed a sig­nif­i­cant bullish can­dle . The in­di­ca­tors and os­cil­la­tors are in­di­cat­ing pos­i­tive bias, which sug­gests fur­ther up­side in the stock. In the short term, the level of Rs 330 is likely to act as a strong sup­port zone as it is 200-day EMA. We sug­gest hold­ing the stock with a stop loss of Rs 330 and the ex­pected tar­get in the medium term would be Rs 380-390.

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