Monday, March 27, 2017

Technical Analysis of Welspun India Limited (NSE India) on 27 March 2017

Technical Analysis of Indian Stocks: Welspun India Limited (NSE India) on 27 March 2017

This is no buy/sell recommendation – just a trial to see if Technical Analysis (works to an extent) in NSE – India.

First let us look into the Technicals: Welspun seemed to be in a trading range from July ’16 to Feb ’17 (from ~70-90). In early March, it broke out to 111 but then fell back to around 73.

From 1st Feb, it rose from 73.30 to 97.90 on 10 Feb ’17 on High Volume. After Fibo Retracement on low volume (it also seems like a Flag), it broke out on High Volume on 24 March ’17. There seems no sign of a re-test!

Prediction: Pattern suggests that it could rise up to ~109. To be on the safe side, I would say it could reach at least 107 with SL @ 83.40

Fundamental Data: With increasing Revenue and Profits, increase in share price could be expected.

Actual in M INR
2015
2016
Sales
47 229
53 877
Operating income (EBITDA)
12 742
15 575
Operating profit (EBIT)
9 412
11 825
Pre-Tax Profit (EBT)
7 533
10 378
Net income
5 398
7 029
P/E ratio
6,66
15,3
EPS ( INR )
5,38
7,00
Dividend per Share ( INR )
1,05
1,30
Yield
2,93%
1,21%
Reference price ( INR )
35.8
107

Note: Data collected from Internet (I am not sure about the accuracy)



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