Today’s next pick is IDEA [stockquote]IDEA[/stockquote]. The stock saw a range bound movement till April. After a downward break out of the range, the stock moved to Rs. 75 levels to find support till September. Since then the stock is in an uptrend, and it saw a 52 week high of Rs. 123 in mid-January. In the last three months, the stock has moved +20% vs. +4% of the Nifty’s.
Oscillator RSI and CMO are in no-man’s land. The stock is trading close to the lower end of Bollinger band giving an upward bias.
The MACD line and the signal line are moving parallel to each other and suggest the short –term downtrend to continue. Although, Long-term GMMA lines are well spread out, and hence are giving a bullish sign for the long-term.
IDEA’s average correlation with the Nifty is 0.41 which is positive. The scrip will be replicating movement of Nifty. [stockquote]NIFTYBEES[/stockquote]
IDEA has a historical volatility in the range of 0.4 to 0.8. The scrip’s volatility is currently in the middle of the range.
Given these technicals, we suggest a short-term sell. For the long-term, we suggest a buy. However trailing stop-losses will be of help in case sudden trend-reversal were to take place.
Read what experts have to say about the Indian telecom sector here.
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