LFIN - An Update!!!

11th of August we analysed LFIN based on Price Action as against the Dividend Payments and Splits in terms of holding it for Long Term.

At the bottom of the post the following was stated

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Also if you closely look at the chart given here you will notice that it is trading within a channel where the present resistance line in green is at around 136/80. This area needs to be broken out, to test the area highlighted in yellow. From there onwards we will see new highs. But as the history of this stock has shown, the major price action has happened during the time of a split. Since they have not made a decision to split for 4 years, we may be nearing the year of decision making for the split. But that decision will happen only at the right time based on the thinking of the Board of Directors.

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In that post I shared the following daily chart :

 

(You can go to that post here.....)

From the latter part of Oct 2019 we saw the prices breaking out of that resistance of 136/80, and by the 18th of November 2019, prices have entered into the Yellow zone. The bottom of the zone is 150/50, and since the entering into the zone we can see that the prices are more or less taking support at or around 150/=. We saw the price closing above the present high of 159/80 to close at 160/= with volumes. It was an encouraging close as the volumes at 160/=, were the highest for the day. However this counter had always gone up to above average prices with Splits. Whilst they have not done a stock split for more than 4 years, the level of expansion of the business may need capital infusion. Therefore Splits, Rights issues, good earnings and dividends may have a bearing on further price movements on this counter. Any of these developments will be well taken by the long term shareholders. But remember that though these developments are possible, we can in no way speculate on assumptions, therefore whoever that is reading this post must know what they are doing. You must know whether you are a Trader or an Investor. Thereafter you need to follow your strategies with strict money management techniques, where rules for risk and reward are clearly defined. If you cant understand that, the best is to increase your knowledge on strategies before putting in your hard earned money in to the Stock Market. After all making money in the Stock Market is not easy, but not hard only with increased knowledge and understanding.

The present chart is given below: