CASTROLIND trade ideas
CASTROLIND LONGENTRY ABOVE-131
Sl -127.5
DISCLAIMER:These recommendations and reports are based on the theory of technical analysis and personal observations and are for educational purpose. This does not claim for profit. We are not responsible for any losses made by traders. It is only the outlook of the market with reference to its previous performance. You are advised to take your position with your sense and judgment.
Short on Castrol India (weekly)....But Why and How ?Technical Analysis
1. Whenever it touches the resistance it tumbles down back to the support
2. Same in RSI, Whenever It touches the resistance zone it comes down.
3. It's respecting the trend line from 2016.
There is no way you can short Castrol, But here what you can do!
1. Wait for the stock to come down to support level ie. near 77rs, Wait for the confirmation and then buy.
2. If it breaks support level then don't bother to buy it
Fundametal Analysis
1. Company is almost debt-free, Its Debt to Equity ratio is 0, Financial leverage is 1.0, and Interest coverage ratio is 236
2. Also the company is giving a good dividend of approx 5rs/share, Which higher than its peers.
3. company sales are consistent for over 5 years.
R-0143 Invest in Castrol India on long term for TGT 128/136We feel investors could buy the stock at LTP and add on dips to Rs 106 –108 band (~12.5xCY21E EPS) for a TGT of 128/136.
On hourly chart data is strong as its above VWAP+MACD cross over + TK line crossover and on daily chart strong data starts to form with approaching cloud breakout we assume the trend to continue. So buy at correct price and dip with 2 quarter holding period.