Garware Wall Ropes hits new 52 weeks high in volatile and tough market conditions
Grivaa Technical View
- Buying Range: 1050-1100
- Targets : T1: 1250 and T2: 1465
- Time Frame: 3- 6 months
- Date of Recommendation: 03.07.2018
Garware Wall Ropes broke out of long rounding cup formations on 02.07.2018. The stock had hit high of 1080 on 25.01.2018 in intraday and from thereon, the stock showed signs of fatigue and went into sideways consolidations.
The stock retraced and tested and found support around its 200 DMA placed at 918 levels during the broader market corrections. The Fall of 2018 has left so many unforgettable wounds and scars on investors that people have started to call mid and small-cap stocks as a no-touch basket.
Here is a stock which is breaking out of the base and hitting new highs with a surge in volumes speak about the pedigree of the stock.
The stock has given Bollinger band breakout and is trading well above all important moving averages.
The technical indicators ( RSI, MACD ) are also hitting new highs indicating the bullish long positions in the stock. The stock needs support from institutional investors and recent data suggests that there is increased buying interest from deep-pocketed investors.
The confluence of all the above factors and relative strength line is showing that it’s in the top quartile of market outperformers which can be a real gem in the small-cap basket.
This is a stock which can be added on every dip and 100 DMA can be placed as stop loss.
Usually, we exit stocks on breaching their 50 DMA but since the market is extremely volatile, stocks can test 50 DMA easily and it can shake weak hands quite easily and stop-losses can be triggered and hence we are placing 100 DMA as our stop loss.