Today’s pick is PANTALOONR [stockquote]PANTALOONR[/stockquote]. The stock was trading in between Rs. 150 – Rs. 200 for most part of the year. It saw a bullish breakout of the range in November. The stock saw its 52 week’s high of Rs. 276 in January, and since then it is on a downtrend. In the last three months, the stock moved -32% vs. -4% of Nifty’s.

PANTALOONR Technical Analysis Chart

Oscillator RSI and CMO are in the over-sold territory. The stock is currently trading in the lower range of the Bollinger bands. Short-term technical saw a 9X4 bearish cross-over a few days ago.

The MACD line and signal line are very close to each other and are not suggesting any direction. Also, the Long-term and short-term GMMA lines are inverted in a bearish move.

PANTALOONR Correlation chart

PANTALOONR’s average correlation with the Nifty is 0.60, which is positive and strong. The scrip will be closely replicating movement of Nifty. [stockquote]NIFTYBEES[/stockquote]

PANTALOONR Volatility chart

PANTALOONR has a historical volatility in the narrow range of 0.6 to 1.6. The scrip’s volatility is currently in the lower end of the range.

Given the technicals, we suggest a short-term buy. A long-term call could be taken depending on the directional move of the GMMA lines and price action near the support levels. Also, it is advisable to have a relaxed trailing stop-losses level to book profits in case of a trend-reversal.

For a better picture of the Retail sector as a whole, you can look at what the expert has to say here.

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