Rajesh Exports [stockquote]RAJESHEXPO[/stockquote], for those of you who don’t follow the stock, is a Bangalore based company that manufactures gold & diamond jewellery for export as well as distribution to the domestic wholesale jewellery market. They also own a 75 outlet retail channel via Shubh Jewellers.

I find this stock interesting because it keeps oscillating between Rs. 120 and Rs. 150 levels. As you can see in the chart below, the stock has been sitting pretty in this channel for more than a year.

Rajesh Exports Analysis

This stock could be ideal for those who are looking for some trading action without adding on a lot of risk. With a beta of 0.72, there is not a ton of volatility here. RSI indicator is in the oversold area and the stock is testing its long-time support of Rs. 120.

From a fundamental point of view, the company has shown steady growth over the last three quarters. Gold price volatility has not been kind to the firm and there could be some impact due to that.

RAJESHEXPO - Rajesh Exports Limited - Quarterly Results

As I said earlier in the post, this could a quickie trade for investors trying to get some action that, going by the recent price action of the stock, appears low risk.


Today’s pick is RAJESHEXPO [stockquote]RAJESHEXPO[/stockquote]. The stock has seen a couple of major corrections after trial flights during the year. The stock has got major support around Rs. 115 levels. Post October, the stock again started an up-move which was stopped around Rs. 150 levels a couple of days ago. This is going to act as a resistance for the near term. In the last three months, the stock has moved 18% vs. a meager 4% of the Nifty’s.

RAJESHEXPO Technical analysis chart

Oscillators RSI and CMO are retreating from the over-bought territory. Also, the stock is trading close to the upper Bollinger band and is hence is short-term bearish sign.

The MACD line has just started a move down towards the signal line followed by the fall in the histogram levels suggesting a bearish move. However, Long-term GMMA lines are experiencing an expansion giving out a bullish signal for the scrip. The candle-sticks produced a bearish engulfing pattern just yesterday after a 5% fall in the scrip.

RAJESHEXPO correlation chart

RAJESHEXPO’s average correlation with the Nifty is 0.44 is positive. The scrip will be replicating the movement of Nifty. [stockquote]NIFTYBEES[/stockquote]

RAJESHEXPO volatility chart

RAJESHEXPO has a historical volatility in the range of 0.4 to 1.2. The scrip’s volatility currently is in the lower end of the range.

To conclude, given these technicals, the stock is a short-term SELL. For the long-term we suggest a BUY because of the strong underlying trend with a keen eye around the resistance at Rs. 150 levels.

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