Analysis: JETAIRWAYS

Today’s pick is JETAIRWAYS JETAIRWAYS 259.15 14.40 (5.88%). The stock has been on an uptrend through-out the year, but it picked up momentum since November and it continues to rise. The stock experienced its 52-week high of Rs. 639 in mid-December and is headed towards the same again after a slight correction. In the last three months, the stock has moved a whopping +59% vs. +3% of the Nifty’s.

JETAIRWAYS technical analysis chart

Oscillators RSI and CMO are close to the over-bought territory but historical levels of these indicators suggest that the stock has more room to run before it corrects. Besides, short-term 4×9 and 4×18 just saw a bullish cross-over.

The MACD line is moving close to the signal line and the rising histogram levels are suggesting an imminent bullish crossover of the line. The long-term GMMA lines are well dispersed, giving out a very positive outlook for the stock.

JETAIRWAYS Correlation chart

JETAIRWAYS’s average correlation with the Nifty is 0.56, which is positive and strong. The scrip will be replicating the movement of Nifty. NIFTYBEES 858.25 -4.82 (-0.56%)

JETAIRWAYS volatility chart

JETAIRWAYS has a historical volatility in the range of 0.4 to 1.2. The scrip’s volatility currently is in the higher end of the range and should act as point of caution for traders in case the divergences in RSI and CMO come into play.

Given these technicals, we suggest a short-term and a long-term BUY for the scrip. It’s a good idea to ride the momentum with trailing stop-losses in place to book profits if a trend-reversal were to take place.

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