Broker's call: Symphony (Buy)

Buying range: ₹1,275-1,315

Target: ₹1,530

Symphony , and its subsidiaries are engaged in manufacturing and trading of residential, commercial and industrial air coolers, both in the domestic and international markets. The company operates through two segments: Air Coolers and Corporate Funds. It offers air coolers in various categories, such as residential air coolers, packaged air coolers and central air coolers. It provides tower, personal, desert, room and window air coolers for residences, shops, showrooms and offices; central air cooling solutions for factories, warehouses and large halls, among others, and heavy duty industrial air coolers for factories, offices, schools, malls, assembly halls, warehouses and metro stations, among others.

The price action over the past six months has been confined within an upward sloping channel (as shown in the chart) after witnessing buying demand from August 2015 lows of ₹825. We believe the last two week’s corrective decline has helped the stock to cool off the overbought situation of daily stochastic oscillator (currently placed at 3), thereby offering a fresh entry opportunity

On the weekly chart, the stock witnessed a faster retracement as it retraced the preceding five week’s decline in just a single week after retracing 38.2 per cnet of last major up move (₹815-₹1,450), at ₹1,208 signifying structural turnaround, arguing well for the next leg of the up move.

Going ahead, we expect the stock to resolve higher and eventually head towards ₹1,530 in coming months as it is 61.8 per cent retracement of April-October 2018 decline of ₹1,947-815), at ₹1,515.

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