Usha Martin 200 dema currently is at 299. Stock price recently went below that level and traded and closed below that level for a few days and now has bounced back above that. Double top was at around 375 and intervening bottom is at 253. That level of 253 seemed like a panic bottom and effectively stock price has been taking support at around 270-275.
Here we have a fair idea about fundamentals of the company and the reason why the stock price is under constant pressure. Fundamental performance remains good and with capex benefits coming on stream in a quarter or two, I would like to keep observing how the company performs. Many a times abatement of selling pressure itself can cause a rally in stock prices. If Prashant Jhawar group were to stop selling for some time, we can see some uptick in stock price. The heartening thing to see for me was that most of the supply was getting absorbed above the support zone of 270-275.
Usha is one stock where I have had fundamental conviction right from the entry point and that has helped in me managing to hold on to the stock (and adding at appropriate times ) during long periods of consolidation.
Above is my thesis of investing and holding in Usha and not an investment advice.
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