Today’s pick is CONCOR [stockquote]CONCOR[/stockquote]. The stock started the year with a double top around Rs. 950 levels and dropped to find support at Rs. 850. After trading for a while near its support, it started its uptrend to see its 52 weeks high of Rs. 1,100. This was followed by a drop to Rs. 900 levels by Feburary, and the stock currently is again on an up-move. In the last three months, the stock moved +15% Vs. -4% of the Nifty’s.
Oscillator RSI and CMO are currently hovering close to over-bought territory. The stock is currently trading close to the upper edge of Bollinger bands.
The MACD line and signal line are moving parallel to each other without giving trend reversal signal. Also, the Long-term and short-term GMMA lines are spreading out and hence are pointing towards a continuation of up-move.
CONCOR’s average correlation with the Nifty is 0.45 which is positive. The scrip will be replicating movement of Nifty. [stockquote]NIFTYBEES[/stockquote]
CONCOR has a historical volatility in the range of 0.3 to 0.7. The scrip’s volatility is currently in the upper end of the range.
Given these technicals, we suggest a short-term and a long-term BUY is suggested given the underlying trend. It would be nice to have tight trailing stop-losses to book profits in case of a sudden trend-reversal.
