Analysis: STER(SLT)

Today’s pick is STER STER 0.00 0.00 (0.00%). The stock started the year with a rush to Rs. 140 levels, and after peaking off, it started its descent. The stock found a support around Rs 90 levels. Since then the stock has tested the support many times. Also, the stock seems to have found resistance around Rs. 120, which was tested twice in December, and stock again plummeted to the support levels. In the last three months, the stock has moved +3% vs. +5% of the Nifty’s.

STER Technical analysis chart

Oscillator RSI and CMO are closing in towards the over-sold territory. The stock is trading in the lower end of a very large Bollinger band range giving bullish bias.

The MACD line and signal line are moving parallel to each other, unable to give any outlook. Stagnating histogram levels do suggest forthcoming trend reversal. Also, Long-term and short-term GMMA lines are running close to each other and are not giving out any directional bias.

STER Correlation chart

STER’s average correlation with the Nifty is +0.71 which is positive and strong. The scrip will be replicating movement of Nifty closely. NIFTYBEES 0.00 0.00 (0.00%)

STER Volatility chart

STER has a historical volatility in the range of 0.3 to 0.8. The scrip’s volatility is currently in the lower end of the range and hence not a concern for the traders.

Given these technicals, we suggest a short-term sell. For the long-term we suggest to take a call based upon its behavior around the support levels.

If you enjoyed this post, please consider registering to get a weekly digest of our articles.
Get in touch with Shyam for advice on mutual funds. You can either WhatsApp him or call him at 080-2665-0232. He is an AMFI registered IFA who can advice you on Franklin, Blackrock, IDBI, Mirae, HDFC, ICICI Pru, UTI, Sundaram, Reliance, Religare, Peerless, Tata and Birla Sun Life funds.