Strategy
Buy Nilkamal in the range of Rs. 1325.00-1365.00 for target price of Rs. 1590.00 with a stop loss of Rs. 1225.00. Time Frame: Six months
Technical View
The stock has formed a potential triple bottom formation at 61.8% retracement of last major rally seen during 2013-17 (Rs. 95-2275), placed at Rs. 928. Currently stock logged a resolute breakout from the three years falling trend line, indicating trend reversal that augurs well for resumption of primary up trend. Thereby offering fresh entry opportunity.
Key point to highlight since listing is that, stock has not corrected for more than 10-12 quarters. In current scenario, as price has already corrected for past twelve quarters, we expect stock to maintain the same rhythm.
On the volume front, we have observed that, each corrective phase have been accompanied by subdued volumes and subsequently picked up during major up move. Currently on the weekly chart volumes have started to pick up above its 52 weeks average, indicating larger participation
We expect the stock to resolve higher and head towards Rs. 1590 in coming months as it is the 50% retracement of the entire 2017-19 decline (Rs. 2275 – 890), at Rs. 1582.
For details, click on the link below: https://www.icicidirect.com/mailimages/IDirect_GladiatorStocks_Nilkamal_Aug20.pdf
Shares of NILKAMAL LTD. was last trading in BSE at Rs.1377.25 as compared to the previous close of Rs. 1278.3. The total number of shares traded during the day was 11349 in over 1635 trades.
The stock hit an intraday high of Rs. 1439.75 and intraday low of 1271.5. The net turnover during the day was Rs. 15717079.
