Today’s pick is PRESTIGE [stockquote]PRESTIGE[/stockquote]. The stock has been on an uptrend for most part of the year. It moved in a very tight range of Rs. 100 and Rs. 120 for 5 months through April to August to break out with a bullish move. Since then the stock has been moving on an uptrend and saw its 52 weeks high of Rs. 195 couple of weeks ago. In the last three months, the stock has moved +10% vs. +2% of the Nifty’s.
Oscillator RSI and CMO are in no man’s land. The stock is trading in the middle of Bollinger band not giving any short-term directional bias. Short-term technicals saw a 4×9 bullish cross-over accompanied with a Dragonfly bullish doji.
The MACD line and signal line are moving very close to each other without giving any directional bias. However, Long-term and short-term GMMA lines can be seen expanding giving out an extremely bullish signal for the stock.
PRESTIGE’s average correlation with the Nifty is -0.08 which is negative. The scrip will not be replicating movement of Nifty. [stockquote]NIFTYBEES[/stockquote]
PRESTIGE has a historical volatility in the range of 0.6 to 1.4. The scrip’s volatility is currently in the lower end of the range.
Given these technicals, we suggest a short-term buy. For the long-term also we suggest a buy with a keen eye around Rs. 195 levels, which might act as resistance for the stock in the short-term. However trailing stop-losses will be of help in case sudden trend-reversal were to take place.
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