Analysis: ATUL

Today’s pick is ATUL [stockquote]ATUL[/stockquote]. The stock has been on an up-trend ever since the start of the year. It just saw its 52-week high of Rs. 475 last week.The stock has a support near Rs. 400 levels. In the last three months, the stock has moved 26% vs. a meager 4% of the Nifty’s.

ATUL Technical analysis chart

Oscillators RSI and CMO are nearing towards the over-sold territory. Also, the stock is trading close to the lower Bollinger band and is hence a bullish sign.

The MACD line and the signal line are moving far from each other but not suggesting any direction. Long-term GMMA lines are experiencing an expansion giving out an extremely bullish signal for the scrip. Short-term technical gave a 18×9 and 18×4 bearish signal recently.

Atul Correlation Chart

ATUL’s average correlation with the Nifty is 0.57 is positive and strong. The scrip will be replicating the movement of Nifty closely. [stockquote]NIFTYBEES[/stockquote]

ATUL Volatility Chart

ATUL has a historical volatility in the range of 0.4 to 0.9. The scrip’s volatility currently is in the middle of the range.

To conclude, given these technicals, the stock is a short-term HOLD. For the long-term we suggest a BUY because of the strong underlying trend with a keen eye around the Rs. 400 levels.

Enhanced by Zemanta

Comments are closed, but trackbacks and pingbacks are open.