BUY(Enter) at 90.00
SELL(Exit) at 99.00
Stop Loss at 85.00
Profit 7.90%
Loss if stopped 7.35%
A breakout of 100 can take it up to a decent trade.
GRAN.N.0000 has become one of the favorites of traders since of late. This had a phenomenal rally during 2015. Trading around 35.00 for many boring days in the early part of the year, and flying through, during the mid part of 2015, and reaching 120.00 in a matter of 2 to 3 months. But the Sellers, who are also called Bears smashed it down, and the stock came down a little more than 28% as fast as it went up, to hit a low of 86.30 on the 4th of December. From the high of 120 to the low of 86.30, the prices have come down 4 times and has gone up 3 times. The % of declines during the down times has been 13.3%, 22.2%, 7.35% and the final had been 14.6%. During the up times the % increases are 12.5% 12.09% and 7.41%. Presently it is trending at a narrow range between 86.30 and 91.80. Company has shown a turn around, ans they are making higher profits, although the P&L of the Group shows an inconsistent profit growth on a quarter to quarter basis. They have nevertheless reported a profit of 9.52 for the 9 months till Sep '15. In the first quarter they made 2.80, and the profits were released in May-June period, during this period the prices moved from 35.50, to 53.00. Thereafter it trended side ways till mid July. During July-August once again the 2nd Quarter results came, this time the profits were 2.59, this time the stock went upto 86.00 by the 19th August. During Oct-Nov period the 3rd quarter results hit the market and 3.86 was what they made. From a low of 72 on the 7th of September, to a high of 120 on the 14th of October the prices rallied. As we are expecting the final quarter results to hit the market somewhere in January-Feb of 2016, if they keep upto the average quarterly profit growth of 3.17, then they can end up the year with a profit of 12.69. This expectation is something that will take the stock prices to retest the psychological levels of 100, 110, 115 and finally 120. I feel the counter can rally upto 99 and 100 in the present phase.
2 comments:
Yes there is a strong base is forming around 89.9. levels . But the first resistance level is 96.3 and next is 100.1 .
Yes Vithy S, what you say is true. If you take the Fib retracement from 120 to 86.30, the 38.2% is at 99.00, in my setup I focused purely on that. Reason being that, as long as the support at 85 to 86 is held this will test the 38.2%. For any bullish counter. I have noticed that this is an area that's easily reachable, in the Sri Lankan context.
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