Today’s pick is [stockquote]RAYMOND[/stockquote]. The stock has made a 12% since the Rs. 335 levels of last October.
The up-trend since January this year has seen resistance around the 420 levels a few times. The stock has seen many corrections in the last one year, and is trading above the near-term support of 340.
The GMMA chart for the stock is not suggesting a directional move, one way or the other. The short-term lines are very close to each other and the long-term lines are entangled.
Raymond’s average correlation of 0.57 with the Niftybees is positive and strong. At this level, the stock will not replicate the Niftybees. [stockquote]NIFTYBEES[/stockquote]
Raymond has a historical volatility in the range of 0.4 to 0.8. The scrip’s volatility is currently on a decline because of the consolidation phase the stock is undergoing.
Looking at these technicals, it appears that the stock is presently in the consolidation territory. A short-term hold is suggested. For the long-term outlook of the scrip, watch the long-term GMMA lines to surface a trend.