@hitesh2710 If you see multiple such breakouts in various sectors/stocks, do you follow any way to rank them? And in the current broad market rally many sectors/stocks are breaking all time highs/52weeks high, making CnH over long periods etc. So do you follow any process to rank stocks/sectors as after all the capital is limited?
Thanks for the explanation @pikrohit . Sharing a few of the stocks in the same vein making new all time highs.
If anyone can point out which of these stocks look stronger technically, will be grateful. I am learning technical analysis and I am still far away from expertise.
Discl:
Invested in CAMS and Powergrid. Considering others depending on how they open tomorrow. (Will buy if they open in green)
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When there is a wide variety of bullish chart patterns to choose from, its often difficult to pick a few stocks to bet on.
One thing I like to see is strength in whole sector or similar kind of companies. Many a times stocks from same sector move in synchronization. Some move early, some late but most of them do move. So idea should be to be in such sectors with a basket approach.
If I am looking at an individual stock I usually try to see strength in the stock. If the stock has been undergoing daily correction, I prefer to wait till that is over and then get in. Other times we often get a chance to get into a stock post breakout when stock undergoes a few days consolidation before making a strong upmove. ( I think some hotel stocks fit into this category, but its a personal view).
I am not too much into parameters but one parameter I follow is looking at weekly and monthly RSI. They should preferably be above 60, and if they are above 70, even better. These are stocks which have a lot of strength and likely to move faster and stronger. But this in isolation is no use. Everything should fit together including fundamentals for a decent allocation in a techno funda bet.
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ChartNumer#2
FERMENTA BIOTECH
Price consolidating on 200 SMA, which can act as a SL
Breakout above 340 can easily open doors for 367—>400.
Company is engaged in manufacturing of Vitamin D3, which is seeing higher demand post covid. Lots of capex plans are in action as per their last investor presentation.
Update on previous post
Target 1 achieved, price currently reversing from there.
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Pitti Engineering Limited breaks out above the 8 months long trendline, trading at all time high.
Pitti Engineering Limited, a company engaged in the business of producing Sheet Metal, Die-cast Rotors & Assemblies, Stator Core Assemblies, Fabricated Machined Components, Pole Assemblies, and Machined Components for varied industries including industrial drives, freight and passenger rail, mass urban transportation, power generation, aerospace, oil & gas, mining and earth moving equipment, renewable energy and infrastructure projects, amongst others.
The share price has been in uptrend since November 2020. Yesterday the prices have broken out above the 8 month old trendline. After forming a cup and handle. Currently trading at all time high.
There is another long-term (A decade long) trendline posing resistance at 165-170 level.
Disclosure invested at lower levels.
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Wonder if this is true? Some really well followed traders talking about this and many agreeing with this.
Trade safe everyone!
PS: As a fundamental investor, only noticed that none of the businesses I follow have been unusually hammered down if they even posted bad results and most just rocket up on good news/numbers.
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Daily Chart of Prince Pipes. Prices have formed a dragonfly doji exactly at the 61.8% fib level. One of the reasons is the falling pvc prices which after hitting a peak led to inventory gains for most plastic pipe manufacturers. The main growth tirgger for Prince is its tieup with lubrizol flowguard CPVC which enables it to cross-sell CPVC pipes . Lubrizol in 2016 terminated its tieup with Astral;Poly for supply of cpvc resins & Finolex Industries in 2020. Prince & Ashirvaad pipes are currently the only two companies which have a processor agreement with lubrizol in India. Furthemore, Lubrizol has tied up with Grasim for the worlds largest plant manufaturing CPVC resins which will start production sometime in 2022-2023 in Gujarat increasing supply security considerably.
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From anecdotal evidence fintwit is usually not particularly prescient.
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Recently I have joined this community I would really appreciate to give your views on this .
PS: I’m a Amateur in Stock Market.
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GNFC, Monthly - Has been on an uptrend after breaking out of 3 year downtrend and consolidation for 6 months.
Daily RSI is at support and probably good entry for getting on the uptrend.
Fundamentally it appears to be at good value at 8x earnings (8 P/E) and below book value. With a market cap of 5700 Cr., the business has cash of 1450 Cr in its book making the EV around 4250 Cr (Trading around 4x EV/EBITDA). This is another business which is valued like a fertilizer company like Deepak Fertilizer when its deriving bulk of its numbers from Chemicals business. Nearly 70% of the revenues come from Chemicals (Acetic Acid, Aniline, Nitric Acid, Ammonium Nitrate, Formic acid etc.) and almost all its bottomline as the fertilizer business is barely breakeven.
Considerable improvement in the balance sheet, now becoming a debt-free company, with surplus cash to the tune of 1450 Cr.
OCF for FY21 is nearly 50% of its EV
Excellent improvement in Debtor days as the govt. cleared a lot of subsidies (1722 Cr subsidy payment to GNFC at one go last year) and is showing intent of doing so going ahead
The business is also embarking on a Capex plan in the chemicals space to expand its chemicals business (Ammonia, Ammonium Nitrate, Nitric Acid).
GNFC is a market leader in TDI (Toluene diisocyanate) and nearly 1000 Cr of revenues come from TDI. Also, govt. recently announced a anti-dumping duty on TDI which too augurs well for the business.
This appears to be a deep value investment on the surface with good improvement in cash flows, better balance sheet, capex plans and a good business outlook with chart on an uptrend as well.
Risks: This is still a commodity business run and a PSU. So may stay cheap forever.
Disc: Invested around current levels
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The risks statement probably sums it all up succinctly.
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Thirumalai Chemical AR 2020-21, Page 29
There has been a sustained pressure for the last many months from rising imports of our commodity
product, PAN, which is now at an all-time high, especially from the Far East. The Government has
started taking action in our products as also in products of other industries and has declared clear evidence of non-compliant dumping behaviour, which is a step in the right direction. The implementation of the final findings has been delayed, as many critical Government Departments in Delhi are suffering from the extensive Covid impact in terms of staff and attendance. We are following up actively so that the necessary instructions are given.
Implementation may be delayed as per the AR.
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KNR Cons, Weekly - Nice C&H formation in a 5 month consolidation around 200-230 levels. Yet to breakout though. Order book has grown quite a bit last few quarters and stands now at 11440 Cr (nearly 4x FY21 topline of 2900 Cr). They have always had better execution than peers and better metrics. Trading at 16 times earnings with a good business outlook, so feels cheap.
Risks: Not sure how much margins can be hit going forward due to commodity price inflation and what clauses they may have to renegotiate
Disc: Have positions old and new
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Post # 4 JYOTHI LABS
Price gave a breakout above 200 weekly MA as well as a major neckline with decent volumes. If sustains above 164 (SL) can easily achieve 182 (61.8% retracement from 2018 highs).
Update on Post # 3 - Fermanta from 330 levels touched 370, but fell sharply after poor Q4 numbers.
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Pitti Engineering Limited: Maybe we need to wait for the FY22Q3 results
Pitti Engineering Limited has been in strong uptrend, as shown in the daily chart below:
The above chart also shows a long term uptrend (ten years) and a medium term uptrend (8 months). Currently the prices are in the of the triangle formed by the two trendlines.
When will the two trendlines cross?
Two trendlines will cross in February 22, when the Q3 results are likely to be declared, as shown in the monthly chart below:
So by Feb 22, the prices would have to decide their ultimate trend. As of now 165 seems to be a strong resistance, where profit taking is likely to emerge.
The weekly chart is interesting:
The weekly chart above shows that 50 week MA is crossing 200 week MA from below.
Disclosure: Invested at lower levels.
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