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Podcast | Today's Pick: Sundaram-Clayton

| Updated on November 06, 2019 Published on November 06, 2019

The stock of Sundaram-Clayton, after a pause, resumed its downtrend since the beginning of the year. Though the stock attempted a recovery in the February and March, the rally did not sustain as it faced another round of substantial sell-off at ₹3,250. This brought down the price to fresh 52-week low of ₹1,662.5 over a period of time. The stock recovered from that low and was largely consolidating between ₹1,740 and ₹2,100.

However, recently the stock broke out of the consolidation range that it has been holding since August.

In weekly charts , both the RSI and MACD is showing a bullish divergence, signalling a major trend reversal. Another indication of a trend reversal is a confirmed double bottom pattern in the daily charts.

Hence, one can buy the stock with stop-loss at ₹1,940 for a target of ₹2,465 over the medium-term.

Published on November 06, 2019