This FMCG Stock in Perfect Trading Ambit

  • Stock Market Analysis

About the company:

Jyothy Laboratories Ltd (NS: JYOI ) was founded in 1983 by Mr. M. P. Ramachandran in Thrissur, Kerala. With a humble beginning as a single-unit, a single-product manufacturing company, it has grown significantly to become a leading FMCG player with a pan-India presence and several household brands like Ujala. The stock is trading at a 5% discount from the all-time high / 52- week high level. The 52-week high and 52-week low range is Rs 187 – Rs 128.

Technical observations:

One-week time frame: (Fig 1)

On a weekly time frame, Jyothi Labs stock will likely break out of Ascending Triangle pattern. Above-average volumes support this move. Also, note that the share has been able to stay above the support level of Rs 168. Relative Strength Index (or RSI) is above 60, and the Moving Average Convergence Divergence (or MACD) line is in the process of crossing the signal line from below. It also indicates positive momentum on the scrip. Long-term investors should enter at current levels with a stop loss of Rs 153 on a weekly closing basis.
JL1
One day time frame: (Fig 2)

On a daily time frame, we can see a Rounding Bottom formation. The share dipped below the 50-day EMA on August 18, 2021. Later it consolidated for almost 15 days and made a bottom close to Rs 155. Since then, the share has bounced back above the 50-day EMA line. It touched a high of Rs 184 and is now consolidating just below a significant resistance level of Rs 178. We expect the share should break out in the next couple of weeks with higher volumes. RSI is above 60, and the MACD line has crossed the signal line from below. It indicates positive momentum on the share. Positional traders should enter above Rs 178 level and keep a stop loss of Rs 164 on a daily closing basis.
JL2
Conclusion:

We expect the stock to maintain positive bias and move higher. Short-term traders should enter at the current level and keep a strict stop-loss of Rs 175 on a daily closing basis.

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  • Sneha Patil @Sneha Patil
    when to exit ?
    Like 0
    • Mahesh Kiran @Mahesh Kiran
      Recommend Target 196
      Like 0
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  • Tr Surendhar @Tr Surendhar
    Thank u any comments on icici bank
    Like 0

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