Kesoram Industries has been a rank laggard as compared to the markets. On the fundamentals front, the company demerged its tyre business into Birla tyres. Now main business comes from cement and small part of business from rayon etc.
On daily GMMA charts, a breakout from inverted head and shoulders pattern is visible. More interesting is the small symmetrical triangle within right shoulder, marked in dotted blue lines… There was a breakout from this triangle few days back, then a retest during the recent 2-3 days fall and then a rebound above the neckline of inverted head and shoulders marked in solid blue lines.
Inverted head and shoulders pattern if successful can provide targets of 75. cmp 60. The current market is one where a lot of laggards are trying to make a comeback or have already made comebacks… More of a mean reversion happening. Taking a punt on this theory, I took a small position in Kesoram. Rumours keep floating around of stake sale by promoters to potential suitors, but nothing till now has come out of these rumours. Company is mentioning about debt reduction and more focus on profitability
| Subscribe To Our Free Newsletter |
