MEGH

Flash News Investment - - YOUR TECHNICAL PORTFOLIO GUIDE - - Ar­jun Udani

The val­u­a­tions of Megh­mani Or­gan­ics looks at­trac­tive, Can I en­ter at the cur­rent price for the long term?

BUY AT CUR­RENT PRICE WITH STOP LOSS OF RS 50 ON A WEEKLY CLOS­ING BA­SIS.

Megh­mani Or­gan­ics Ltd is cur­rently trad­ing at Rs 56.05. Its 52-week high/low stand at Rs 126/Rs 55 made on Jan­uary 10, 2018 and Novem­ber 9, 2018, re­spec­tively. The stock, af­ter wit­ness­ing a strong up­move from the lower level of Rs 18.25 in Fe­bru­ary 2016 to the level of Rs 129.40 in Novem­ber 2017, had spent a ma­jor part of the cal­en­dar year 2018 in a cor­rec­tion zone which is likely to halt in the com­ing weeks. Con­sid­er­ing the weekly scale, the stock has strong sup­port zone at Rs 55-Rs 50 as its cru­cial long term mov­ing av­er­age, i.e. 200-week SMA is placed there and it co­in­cides with 61.8 per cent Fi­bonacci re­trace­ment level of the en­tire up­ward move started from the low of Oc­to­ber 2013 to its all-time high in Novem­ber 2017. On the daily scale, all the in­di­ca­tors and os­cil­la­tors are in the over­sold zone. Con­sid­er­ing all these fac­tors, we rec­om­mend you to buy at the cur­rent price with stop loss of Rs 50 on a weekly clos­ing ba­sis.

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