Today’s pick is ABIRLANUVO [stockquote]ABIRLANUVO[/stockquote]. After an initial uptrend that lasted until April, the stock collapsed towards its long term support level of around Rs. 725, testing it multiple times through late September. However, the stock regained its mojo and has been on an up-trend ever since. In the last three months, the stock has risen 41% against 10% of the Nifty’s.
The MACD line is headed towards the signal line and the decreasing histogram levels are suggesting a short-term bearish move.
The long-term GMMA are fanning out to give a long-term bullish outlook for the stock. The short-term GMMA lines just gave a bearish signal with the lines crossing-over. However, the 9×18 technical is suggesting a near term bullish move for the scrip.
ABIRLANUVO has a historical volatility in the range of 0.3 to 0.6. The scrip’s volatility is in the middle range.
From a fundamental point of view, Globe Capital has a BUY on ABIRLANUVO. They expect it to become a beneficiary of increased FDI in insurance and they are also bullish on its chances of getting a banking license.
To conclude, given these technicals, the stock is a short-term SELL. For the long-term the stock has a clear technical green signal and it appears that the fundamentals concur: long-term BUY.