Today’s pick is SUNTV [stockquote]SUNTV[/stockquote]. The stock started the year in a range bound movement, but broke down of the range in March, slipping to Rs 225 levels by June. Since then the stock has been on an uptrend and saw its 52-week high just yesterday. In the last three months, the stock has moved +44% vs. +5% of the Nifty’s.
Oscillator RSI and CMO are hovering in the over-bought territory. The stock is trading in the top end of Bollinger band giving out an extremely bearish direction.
The MACD line and the signal line are moving away from each other, suggesting a continuation of the medium term up-trend, confirmed by rising histogram levels. Also, both long-term and short-term GMMA lines are very distant from each other, giving out a bullish sign for the scrip.
SUNTV’s average correlation with the Nifty is 0.53 which is positive. The scrip will be replicating movement of Nifty. [stockquote]NIFTYBEES[/stockquote]
SUNTV has a historical volatility in the range of 0.4 to 1.2. The scrip’s volatility is currently in the lower end of the range.
Given these technicals, we suggest a short-term Sell for correction. But for the long-term, we see the stock to be sticking to its long-term up-trend and hence is a Buy. However, we suggest having trailing stop-losses in case sudden trend-reversal were to take place.
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