Todays Pick

Colgate-Palmolive (₹1,601.3): Buy

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

Colgate-Palmolive

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
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