Today’s pick is SKSMICRO [stockquote]SKSMICRO[/stockquote]. The stock started the year with a down move to Rs. 50 levels. After finding support at the levels, the stock started its up-move to see its 52 weeks high of Rs. 200 in December. Since then the stock has been on an down-trend finding support near Rs. 140 levels. In the last three months, the stock moved -21% vs. a -1% of the Nifty’s.
The MACD line and signal line are moving very close to each other in the positive direction. However, the Long-term and short-term GMMA lines are contracting, unable to provide any outlook for the stock.
SKSMICRO has a historical volatility in the narrow range of 0.6 to 1.8. The scrip’s volatility is currently in the middle of the range.
Given the technicals, we suggest a short-term BUY. A longer term call could be taken based on stocks behavior near Rs. 180 levels. Also, it is advisable to have a tight trailing stop-losses level to book profits in case of a sudden trend-reversal.