Today’s pick is SYMPHONY [stockquote]SYMPHONY[/stockquote]. The stock started the year with a range bound movement, which broke out on the downside to reach Rs. 200 levels. After finding support there, the stock started its up-move to see its 52 weeks high of Rs. 455 in October. It then retraced the gains to find support at Rs. 300 levels. Since then the stock has been on an up-trend. In the last three months, the stock moved +21% vs. a flat Nifty.
Oscillator RSI and CMO are crawling towards over-bought territory. The stock has just broken out of a channel and is currently trading at the top of the Bollinger bands.
The MACD line and signal line are moving very close to each other, not giving any direction to the stock. Also, the Long-term and short-term GMMA lines are contracting, unable to provide any outlook for the stock.
SYMPHONY’s average correlation with the Nifty is zero. The scrip will not be replicating movement of Nifty. [stockquote]NIFTYBEES[/stockquote]
SYMPHONY has a historical volatility in the narrow range of 1 to 4. The scrip’s volatility is currently in the lower end of the range.
Globe capital has a buy call based on fundamentals:
· Q2FY2013 financial performance – 48% growth in PAT
· Large dealer-distribution network
· Exports to boost sales in near term
· Increasing temperature and global warming to fuel demand for air coolers
· Industrial air cooling – growth driver to profitability
Given the technicals, we suggest a short-term and a long-term BUY. Also, it is advisable to have a relaxed trailing stop-losses level to book profits in case of a trend-reversal.
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