Today’s pick is MUTHOOTFIN [stockquote]MUTHOOTFIN[/stockquote]. The stock began 2012 with a small uptrend, which ended very quickly after seeing highs of Rs. 180. The downwards movement that followed lasted till September. The stock has since been on an up-trend and touched its 52-week high just yesterday. In the last three months, the stock has moved +26% vs. +5% of the Nifty’s.

MUTHOOTFIN Technical analysis chart

Oscillators RSI and CMO are closing towards the over-bought territory. The short-term technical flashed a 4×9 Bullish cross-over for the scrip.

The MACD line has just penetrated the signal line from below to give out a bullish signal. The long-term GMMA lines are experiencing expansion which suggests an upward movement to the stock for a longer term horizon.

MUTHOOTFIN correlation chart

MUTHOOTFIN’s average correlation with the Nifty is Zero. The scrip will be not be replicating the movement of Nifty. [stockquote]NIFTYBEES[/stockquote]

MUTHOOTFIN volatility chart

MUTHOOTFIN has a historical volatility in the range of 0.4 to 1.0. The scrip’s volatility currently is in the middle of the range.

Given these technicals, we suggest a short-term and a long-term BUY for the scrip. With trailing stop-losses in place traders can book profits if a trend-reversal were to take place.

Disclaimer: The analyst holds this stock in his portfolio.

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