Analysis: GRASIM

Today’s pick is GRASIM. [stockquote]GRASIM[/stockquote]. After a head-fake in Jan-Feb this year the stock touched its 52 week low of 2200 in June. It then swiftly swung towards its 52 week high of 3510. However, it looks as if the stock has exhausted whatever momentum it had. In the last three months, the stock has under-performed the Nifty, rising just 11% against the 12% rise of Nifty’s.


Oscillators RSI and CMO are at 51 and –4 and are currently in no man’s land. The MACD line made a bullish crossover a few days ago, resulting in a slight bump up in the stock.

The long-term GMMA lines are running very close to each and are not suggesting any particular direction. In the short-term, you could possibly trade the 9X18 bullish cross-over.


GRASIM’s average correlation of 0.59 with the Nifty is positive. The stock will replicate the movements of Nifty closely. [stockquote]NIFTYBEES[/stockquote]


GRASIM has a historical volatility in the range of 0.3 to 0.6. The scrip’s volatility is currently in the lower side of that range.

Looking at these technicals the stock is short-term buy. A longer term call could be taken based on the stocks behavior around its 3400 resistance level.

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