Analysis: SKSMICRO

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.

SKSMICRO technical analysis chart

Oscillator RSI and CMO are currently in no-man’s land. The stock is currently trading in the middle of the Bollinger bands. Short-term technical just saw a 9×18 bullish cross-over.

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 correlation chart

SKSMICRO’s average correlation with the Nifty is 0.30, which is positive. The scrip will be replicating movement of Nifty. [stockquote]NIFTYBEES[/stockquote]

SKSMICRO volatility chart

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.

For a better picture of the NBFC sector as a whole, you can look at what the experts have to say here and here.


  1. shyams

    do you have a price target?

  2. AbhishekPreetam

    I see the stock go up to Rs. 160 levels in 2 weeks time.

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