Today’s pick is LICHSGFIN [stockquote]LICHSGFIN[/stockquote]. The stock has been on a constant uptrend for the entire year coupled with many corrections. It touched its 52 week high of Rs. 287 in October. The stock is currently hovering around the same levels after experiencing a double bottom around Rs. 240 levels. In the last three months, the stock is up 6% vs. 8% of the Nifty’s.
Oscillators RSI and CMO are deep inside the over-bought territory – a bearish sign for the scrip.
The MACD line and the signal line are moving parallel to each other not suggesting any direction for the stock. Also, both long-term and short-term GMMA lines are wide open, giving an extremely bullish signal.
LICHSGFIN’s average correlation of 0.62 with the Nifty is positive and strong. The stock will be replicating the movements of Nifty. [stockquote]NIFTYBEES[/stockquote]
LICHSGFIN has a historical volatility in the range of 0.3 to 0.8. The scrip’s volatility currently is in the lower range.
From a fundamental point of view, Globe Capital has a BUY on LICHSGFIN. The decrease in NPA ratio and an outlook to attain a higher net interest margin are expected to boost company’s profit organically.
To conclude, given these technicals, the stock is a short-term SELL. For the long-term the stock does not seem to have a visible resistance level (if it clears 287, the sky is the limit.) Also the fundamentals are bullish: long-term BUY
