We have seen earlier that experts have recommended Granules India for investment owing to its strong fundamentals.
Now, it appears that Granules has formed some sort of a technical position which will enable it to surge over the next few days (or weeks) and shower quick-fire gains on its shareholders.
This was revealed by Hitesh Patel, one of the moderators at the valuepickr forum.
Hitesh Patel is highly regarded by the other experts at the valuepickr forum for his deep understanding of the fundamental and technical aspects of stocks. As far back as in August 2012, Hitesh had revealed that his portfolio comprises of stocks like Mayur Uniquoters, Hawkins, Page Industries, Atul Auto, Ajanta Pharma etc. Each of the stocks has gone on to become a super-duper multibagger though it is not known whether Hitesh presently holds these stocks or not.
Hitesh’s opinion about Granules is expressed in succinct terms:
“Granules technical picture is a delight for any guy wanting to look into a perfectly uptrending stock. Note some features marked in the chart along with comments.
disc: Invested as a techno funda bet a couple of months back around 120.”
Hitesh has also annexed a chart which supposedly shows that the stock is at a break out point.
(Image Credit: Valuepickr forum)
The chart states that the “resistance” for the stock is at Rs. 164. This implies that if all goes as per plan, hefty gains of 25% are on the anvil from the CMP of Rs. 131.
It is significant that Hitesh has described the scenario as “perfectly uptrending”. This implies that the chances of a failure are remote.
A similar opinion with regard to the technical aspects of Granules has been expressed by other experts as well.
Elite Wealth Advisors has issued a report in which it is stated that Granules has made a “double bottom formation on daily chart” which is a “bullish pattern”. It is claimed that the target for the stock is Rs. 150 in a couple of weeks and that the stop loss is Rs. 122.
We must bear in mind that while a view based on “pure” technical analysis is prone to high risk, a “techno-funda” view is relatively safer because even if the technical aspect fails, the fundamental aspect of the stock will bail it out. So, we can be reasonably certain of getting our money back even in the worst-case scenario!