Analysis: GLENMARK

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.

GLENMARK technical analysis chart

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 correlation chart

GLENMARK’s average correlation with the Nifty is 0.33 which is positive. The scrip will be replicating movement of Nifty. [stockquote]NIFTYBEES[/stockquote]

GLENMARK volatility chart

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.

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