Today’s pick is RELINFRA [stockquote]RELINFRA[/stockquote]. The stock started the year with a double top around Rs 650 levels, and then moved down to find support around Rs. 430 levels. Since then the stock has been under a pennant formation, currently narrowing down. In the last three months, the stock has moved +7% vs. +6% of the Nifty’s.
Oscillator RSI and CMO are close to the over-sold territory. The stock is trading in the lower end of Bollinger band giving an upward bias.
The MACD line is closing and the signal line are moving parallel to each other, unable to give any outlook. Also, Long-term and short-term GMMA lines are running close to each other and are not giving out any directional bias.
RELINFRA’s average correlation with the Nifty is -0.1 which is negative. The scrip will not be replicating movement of Nifty. [stockquote]NIFTYBEES[/stockquote]
RELINFRA has a historical volatility in the range of 0.4 to 1.0. The scrip’s volatility is currently in the lower end of the range.
Given these technicals, we suggest a short-term sell. For the long-term we suggest to watch out for a directional break-out of the pennant to make any call.
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