Todays Pick

Colgate-Palmolive (₹1,601.3): Buy

Akhil Nallamuthu BL Research Bureau | Updated on November 08, 2019 Published on November 08, 2019


The stock of Colgate-Palmolive, after declining through the first half of this year, started gaining traction in the month of August. The stock took support at an important level at ₹1,100, from where the positive trend resumed. It went on to register a new high of ₹1,589.5 in September, gaining 45 per cent in a period of three months. The stock’s year-to-date return is about 19 per cent.

However, the uptrend lost momentum last month and the stock witnessed a minor correction declining to ₹1,434.5. It was followed by a sideways trend continuing throughout October. On Thursday, the stock broke out of the prior high of ₹1,589.5 and eventually made a new lifetime high of ₹1,611, opening the door for further strengthening. Noticeably, the stock rebounded from the 21-DMA at ₹1,520 levels.

The latest breakout also confirms an ascending triangle breakout, a trend continuation pattern. According to the pattern, the stock could rise to ₹1,746. Hence, investors can buy the stock at current levels with stop-loss at ₹1,490. Short-term and medium-term targets are at ₹1,746 and ₹1,835 respectively.

(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)

Published on November 08, 2019
  1. Comments will be moderated by The Hindu Business Line editorial team.
  2. Comments that are abusive, personal, incendiary or irrelevant cannot be published.
  3. Please write complete sentences. Do not type comments in all capital letters, or in all lower case letters, or using abbreviated text. (example: u cannot substitute for you, d is not 'the', n is not 'and').
  4. We may remove hyperlinks within comments.
  5. Please use a genuine email ID and provide your name, to avoid rejection.