Techno Funda Stocks Recommendations -14 th May 2016
Camlin Fine Sciences Ltd CMP : 98.75 BUY range 96 - 100 Stop Loss 90 Target Price 122 Potential Upside/Downside +23%
About the company: Camlin Fine sciences (CFIN) came into existence after its demerger from Camlin Ltd in December 2006. It is one of the leading manufacturer of food‐grade antioxidants in the world. CFIN operates into three major segments– antioxidants, performance chemicals (through itsacquisition of Borregaard, Italy) and aromatic (which is a new segment). Almost 56% of sales comesfrom Antioxidants, 23% from performance chemicals, 20% from Borregaard, Italy and 1% from Aromatic.
1) Stock was depicting downward sloping channel movement from the high of 121 of November 2015 to the low of 76 of February 2016.
2) Stock has breached the upper band of the channel in the month of April 2016
and while retracing as per the concept of change of polarity it has taken support
at this channel trend line support level of around 95.
3) Stock is having good support at around the level of 95 as this level is also
coinciding with short-term upward sloping trend line (blue line) and 50Day
and 100Day EMA levels. The 200Day EMA level is placed at around 96 levels.
Stock is in uptrend as it is trading above all major moving averages and showing
higher-high and higher-low sequence.
4) Considering all above factors we can build long position in the stock with 2-3
months perspective and target can be placed at around 122, with the stop loss of 90. We can accumulate the stock in the range of 100-96.
Our previous SML Isuzu Ltd recommendation is given 27 % return with in 1 month.
About the company: Camlin Fine sciences (CFIN) came into existence after its demerger from Camlin Ltd in December 2006. It is one of the leading manufacturer of food‐grade antioxidants in the world. CFIN operates into three major segments– antioxidants, performance chemicals (through itsacquisition of Borregaard, Italy) and aromatic (which is a new segment). Almost 56% of sales comesfrom Antioxidants, 23% from performance chemicals, 20% from Borregaard, Italy and 1% from Aromatic.
| Period | Simple | Exponential |
|---|---|---|
| MA5 | 99.76 Sell | 99.14 Sell |
| MA10 | 98.68 Buy | 99.43 Sell |
| MA20 | 100.13 Sell | 98.46 Buy |
| MA50 | 93.87 Buy | 96.50 Buy |
| MA100 | 94.96 Buy | 95.95 Buy |
| MA200 | 98.39 Buy | 96.54 Buy |
Buy: 8
Sell: 4
Summary: BUY
| ||
2) Stock has breached the upper band of the channel in the month of April 2016
and while retracing as per the concept of change of polarity it has taken support
at this channel trend line support level of around 95.
3) Stock is having good support at around the level of 95 as this level is also
coinciding with short-term upward sloping trend line (blue line) and 50Day
and 100Day EMA levels. The 200Day EMA level is placed at around 96 levels.
Stock is in uptrend as it is trading above all major moving averages and showing
higher-high and higher-low sequence.
4) Considering all above factors we can build long position in the stock with 2-3
months perspective and target can be placed at around 122, with the stop loss of 90. We can accumulate the stock in the range of 100-96.
Our previous SML Isuzu Ltd recommendation is given 27 % return with in 1 month.
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