Today’s pick is JUBLFOOD [stockquote]JUBLFOOD[/stockquote]. The stock has been on an up-move since the beginning of last year and it experienced the 52 weeks high of 1,400 in October. Since then the stock has been in a downward sloping flag formation. In the last three months, the stock has moved -4% vs. +6% of the Nifty’s.
Oscillators RSI and CMO are nearing the over-sold territory and are suggesting a short-term bullish price action. The stock is close to the lower Bollinger band, which is suggesting a bullish move for the stock as well.
The MACD line and signal line are moving very close to each other unable to suggest any short-term direction. Long-term and short-term GMMA lines are very close to each other and are not able to point at the direction of stock movement.
JUBLFOOD’s average correlation with the Nifty is -0.06 is negative. The scrip will not be replicating the movement of Nifty. [stockquote]NIFTYBEES[/stockquote]
JUBLFOOD has a historical volatility in the range of 0.4 to 1.0. The scrip’s volatility currently is in the lower end of the range.
Given these technicals, we suggest a short-term Buy. A longer term call could only be taken based on the direction of the breakout from the flag in formation. Although, It will be beneficial to have trailing stop-losses in place.
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