There have been many articles and threads written about Rain Ind being an undervalued stock and the concerns around its debt being very heavy but here I will talk about it only technically. This is my analysis but it is not a trading call but purely an Investment call to hold it for a couple of years or till the target is met.
It has formed a beautiful cup and handle pattern and more accurate on the monthly chart. There is also being a trendline resistance from its ATH and it is tested about 4 times now and feels it could be broken.
Now how to buy it- I am adding this stocks in parts - added few at 166.50 and if there is a further fall I will add more.
People can afford to keep the stop loss below 145 which is the previous support levels
Again it is a patience play so I am giving the long term target of around 250 and people can certainly book their profit as per their requirement. I myself could be booking it or trading it but better to hold it for good gains.
There is also 200 MA and 50 MA support on the weekly chart around the levels of 145-165
Trade according to your risk and understand it has a huge debt for which this stock doesn't move much
It has formed a beautiful cup and handle pattern and more accurate on the monthly chart. There is also being a trendline resistance from its ATH and it is tested about 4 times now and feels it could be broken.
Now how to buy it- I am adding this stocks in parts - added few at 166.50 and if there is a further fall I will add more.
People can afford to keep the stop loss below 145 which is the previous support levels
Again it is a patience play so I am giving the long term target of around 250 and people can certainly book their profit as per their requirement. I myself could be booking it or trading it but better to hold it for good gains.
There is also 200 MA and 50 MA support on the weekly chart around the levels of 145-165
Trade according to your risk and understand it has a huge debt for which this stock doesn't move much