Asian Paints - Reversal on the Cards ?
Asian Paints has undergone a very steep correction of around 38% as compared to the Nifty., breaking strong supports on the way down.
My view is that the reversal has begun and I will give reasons for the same:
1. Asian paints has approached its Dec 2020 support levels which were during the Covid levels of close to 2230-2277. It took multiple supports within this range before moving up and consolidating within the range.
2. On a daily chart it has to cover 2 very important zones before moving either way: a: 2325- 2340 and b: 2565-2760. It has also shown a positive divergence on the charts technically indicating a move upwards.
3. The stock has been over sold and as per law of averages, what goes down must go up as well. Short term this is going to give a decent return and long term it has proven itself already. Patience is the key.
4. A good opportunity to gather this stock would be in the range of 2250-2280 for a trgt of 2520/ 2615/ 2762++ with a SL of 2500.
5. Its P/E has corrected significantly as well and is not close to the industrial P/E. With growth in the housing sector, this is always an A1 favourite.
Plz note this is a view and is not a recommendation to buy or sell.
My view is that the reversal has begun and I will give reasons for the same:
1. Asian paints has approached its Dec 2020 support levels which were during the Covid levels of close to 2230-2277. It took multiple supports within this range before moving up and consolidating within the range.
2. On a daily chart it has to cover 2 very important zones before moving either way: a: 2325- 2340 and b: 2565-2760. It has also shown a positive divergence on the charts technically indicating a move upwards.
3. The stock has been over sold and as per law of averages, what goes down must go up as well. Short term this is going to give a decent return and long term it has proven itself already. Patience is the key.
4. A good opportunity to gather this stock would be in the range of 2250-2280 for a trgt of 2520/ 2615/ 2762++ with a SL of 2500.
5. Its P/E has corrected significantly as well and is not close to the industrial P/E. With growth in the housing sector, this is always an A1 favourite.
Plz note this is a view and is not a recommendation to buy or sell.
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Penafian
Maklumat dan penerbitan adalah tidak dimaksudkan untuk menjadi, dan tidak membentuk, nasihat untuk kewangan, pelaburan, perdagangan dan jenis-jenis lain atau cadangan yang dibekalkan atau disahkan oleh TradingView. Baca dengan lebih lanjut di Terma Penggunaan.