Asian Paints has outperformed nifty in last 5 years. The stock made a high around 920 levels in January 2015 & then corrected to 700 levels in March 2015. But bouned back sharply to to make all time high of 926 in August 2015.
Since then the stock has been trading in the zone of 770 to 910 for last 7 months. While nifty is trading almost 20% lower from its all time high Asianpaints is trading almost near to its all time high indicating solid strength in the stock. Although the stock hasn't moved higher but it has made significant higher lows forming a triangular chart pattern. A triangular chart pattern in an uptrend is considered extremely bullish. It looks like the stock will break out from the triangular pattern soon & move higher towards 1050 levels.
So long positions can be initiated in Asianpaints @ current levels for targets of 1050 with a stop of 835 on closing basis.
No comments:
Post a Comment