Today’s pick is COLPAL [stockquote]COLPAL[/stockquote]. The stock has been on an uptrend for most part of the year. The stock experienced its 52 week high of Rs. 1,580 in December but since then the stock has been moving downwards retracing the gains. In the last three months, the stock has moved +2% vs. +5% of the Nifty’s.
COLPAL has a historical volatility in the range of 0.3 to 0.7. 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 buy. For the long-term we suggest to take a call based upon the expansion of the long-term GMMA lines. However trailing stop-losses will be of help in case sudden trend-reversal were to take place.