Analysis: OFSS

Today’s pick is OFSS. [stockquote]OFSS[/stockquote]. The stock has been in an uptrend through-out the past year. There was a three month consolidation phase for the stock May through July, but it could not cap the upwards movement of the scrip. The stock recorded its 52 week high of 3120 in the month of Oct following which it started moving down, finding support along the long-term trend-line. In the last three months, the stock moved 1% against 10% rise of Nifty’s.


Oscillators RSI and CMO are at currently at 67 and 53 – the over-bought territory. Although looking at the historical reversal levels, the stock still has to track 10 points.

The MACD line and signal line are moving very close to each other, not giving enough room to suggest any direction currently.

The long-term and short-term GMMA lines are closing towards each other, not able to give any direction to the stock. However the short-term 4×9 crossover is suggesting a bullish phase for the stock.


OFSS’s average correlation of -0.01 with the Nifty is negligible. The stock will not be replicating the movements of Nifty given such co-efficient. [stockquote]NIFTYBEES[/stockquote]


OFSS has a historical volatility in the range of 0.4 to 1.0. The scrip’s volatility is at its lowest.

Looking at these technicals the stock is short-term BUY. We could give a long-term call once it breaks out of the pennant formation.

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