We covered this stock on 10 July and 13 July Stock has closed at its life high on weekly basis which is very bullish signal and also closed above 136 which is an important gann number. Below is the current technical structure of Generic.
Before we discuss technical lets focus on Fundamental factor which is leading the rally as we are in Bull market and lot of stock are rallying but if we have fundamentals supporting its gives confidence to go ahead and buy and hold it. Big money is made when we sit on our holdings.
Last Friday bounce was led by volumes and also based on the news as per BSE Generic Bags Order Worth 132.84 Cr
Closer look at the above release shows the quality of clients coming is having suggesting it can be a multibagger from current levels also. Company even gave dividend as per last quarter results. Fundamentals look strong and coming quarter results will shed more light on financial performance of the company. Old age Wall street adage Price are slave of Earning, So if earning follow price will rally.
Technical helps us in gauging the price level stock can rise in coming days.
After Initial breakout Generic has covered half of the breakout target in 3 trading sessions,Stock after doing breakout above 121 made high of 135 and than consolidated in range of 131-128 which is half the breakout target above 121, suggesting its pause in existing uptrend. As stock has closed above its weekly high and below Elliot wave chart also suggests we are in an impulsive 3 wave so Fresh longs can be taken above 136, based on breakout rule initial target of this up move should be in range of 142-144-150 in next 1 month. Any close above 144 will be extremely positive from technical perceptive, as per gann rules any close above 144 can see stock giving at least move towards 169/199 in coming 3-5 months.
Remember the Golden Technical Rule Ride the Trend till it bends. Stock is Listed on BSE and Ticker is GENCON.
Traders who missed the rally can take Fresh Long above 136 Target 144/155/166 in next 3 months, SL should be kept at 120 on closing basis.
The above Stocks is not investment pick as I am not expert in Fundamental analysis but a short term pick for gain of 10-20% purely based on Technical Analysis based on my Studies.Please also do your own study before trading this stock and trade in small quantity also be strict with Stoploss.Bramesh Bhandari and his family/associates/ analysts would have exposure in the securities mentioned in the above article.