Today’s pick is GLENMARK [stockquote]GLENMARK[/stockquote]. The stock has been on an uptrend since the start of the year. It saw its 52 weeks high of Rs. 552 in January, and since then has been on a pennant formation. The decreasing volume levels are suggesting that it is soon going to decide on its next move. In the last three months, the stock moved +11% Vs. -1% of the Nifty’s.
Oscillator RSI and CMO are in no man’s land. The stock is currently trading in the middle of the Bollinger bands. Short-term technical just saw a bullish dragonfly doji and a bearish 18×4 SMA cross-over.
The MACD line is moving along the signal line since a month, not suggesting any directional move for the stock. Also, the Long-term and short-term GMMA lines are contracting, unable to provide any outlook for the stock.
GLENMARK has a historical volatility in the range of 0.4 to 0.8. The scrip’s volatility is currently in the middle of the range.
Given these technicals, we suggest a short-term Hold. A long-term call could be taken depending on the directional breakout of the pennant in formation. It is also suggested to have a tight trailing stop-losses level to book profits in case of a sudden trend-reversal.