Technical Analysis of Appollo Ispat on 9 Jan 2017

Technical Analysis of Appollo Ispat on 9 Jan 2017 (after trading hours)

This is no buy/sell recommendation - just a trial to see if Technical Analysis (works to an extent) in Dhaka Stock Exchange.

Fundamental Analysis: It is a growth company according to its increasing profits and EPS. But strangely the market has not been very enthusiastic about it as its PE languishes around 8. It has been giving “tiny” cash dividends in the last two years.

But I could not find an expansion story except than few purchases of land for expansion!

Directors held only 20.5% share at EOY ’16.

	2014	2015	2016
Profit	460	509	753
EPS	1.84	1.77	2.34
Dividend	15%B	3%C + 12%B	5%C + 10%B
NOCFPS	-0.7	2.2	3.7

But Technical chart is very interesting. Of late, it has been generating huge volume. Now, if it can break Resistance around 24-25, then next Supply Zone is at 30 followed by 40.

It is for the break-out risk takers – High Risk, High Gain.

Stop loss would be 19.40.

As the Index is nearing Supply Zone, be wary of opening new positions, especially at High Prices.

Let us see what happens . . .