Mar 10, 2017

Chart Of The Day : AMARA RAJA BATTERIES LTD Buy/Sell/Hold? Short - Mid Term View 10 March 2017 For Trading Positional Technical Analysis Recommendation

Amara Raja Batteries Ltd
Recommendation- Sell

Below 800, the stock will slide down below 700 which is its 200 DMA on weekly chart.
The stock does not seem like going above 950 and likely touch lower level as given only.

In monthly chart you can clearly see, how the stock has been moving within a narrow range of 800 and 1050 in the last 2 years which were very volatile for the entire stock market.

A daily chart is given here for you reference. In weekly and daily chart we can clearly see a highly reliable multiple head and shoulder patter being formed which made it a sell on every rise stock within the symmetric of the pattern.
The stock is right now at the breaking point from the pattern as it seems.
Also, on the fundamental level, the company is not in a business which is in anyways a darling of the investors or an interesting sector as an investing theme in market.
Another pessimistic aspect is regarding company specifics, which is that its peer Exide Industries Ltd. share price has been surging and making new life time highs which the stock of the company in question has lacked to perform; hence the recommendation.
Those who don't want to take risk in futures, can buy put options or sell call options and liquidate delivery based investment holding.

Relevant Charts are given for your reference. Click on the charts for bigger view.

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