Today’s pick is RAJESHEXPO [stockquote]RAJESHEXPO[/stockquote]. The stock has seen a couple of major corrections after trial flights during the year. The stock has got major support around Rs. 115 levels. Post October, the stock again started an up-move which was stopped around Rs. 150 levels a couple of days ago. This is going to act as a resistance for the near term. In the last three months, the stock has moved 18% vs. a meager 4% of the Nifty’s.

RAJESHEXPO Technical analysis chart

Oscillators RSI and CMO are retreating from the over-bought territory. Also, the stock is trading close to the upper Bollinger band and is hence is short-term bearish sign.

The MACD line has just started a move down towards the signal line followed by the fall in the histogram levels suggesting a bearish move. However, Long-term GMMA lines are experiencing an expansion giving out a bullish signal for the scrip. The candle-sticks produced a bearish engulfing pattern just yesterday after a 5% fall in the scrip.

RAJESHEXPO correlation chart

RAJESHEXPO’s average correlation with the Nifty is 0.44 is positive. The scrip will be replicating the movement of Nifty. [stockquote]NIFTYBEES[/stockquote]

RAJESHEXPO volatility chart

RAJESHEXPO has a historical volatility in the range of 0.4 to 1.2. The scrip’s volatility currently is in the lower end of the range.

To conclude, given these technicals, the stock is a short-term SELL. For the long-term we suggest a BUY because of the strong underlying trend with a keen eye around the resistance at Rs. 150 levels.

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