Today’s pick is MARICO [stockquote]MARICO[/stockquote]. The stock has been in an uptrend since the very beginning of the year. It touched the 52 week high of Rs. 232 a couple of weeks ago, and is still continuing in the upwards direction. In the last three months, the stock is up 15% vs. 5% of the Nifty’s.
Oscillators RSI and CMO are in no man’s land suggesting no direction for the stock.
The MACD line and the signal line are moving close to each other – directionless. Both long-term and short-term GMMA lines are well dispersed giving a very prominent bullish signal for the stock. Short-term technical gave a 4×9 bullish signal for the stock last week.
MARICO’s average correlation of 0.35 with the Nifty is positive. The stock will replicate the movements of Nifty. [stockquote]NIFTYBEES[/stockquote]
MARICO has a historical volatility in the range of 0.4 to 0.8. The scrip’s volatility currently is in the lower range.
To conclude, given these technicals, the stock is a short-term BUY. Following the current trend in the progress, the scrip is also a long term BUY.
Disclaimer: The author has a long position in this stock
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