GHCL - Techno Funda Outlook

                                              
                                                                Chart 1: Weekly Chart

 

·         GHCL has corrected in the zigzag pattern in the wave 4 of primary degree Chart 1.

·         The stock has formed an inverted hammer on daily charts indicating the arrest of downtrend.

·         The RSI holding the threshold support and looks likely for a reversal

·      Thus counter can be accumulated around CMP (72.50) up to 70 with 65 as stop loss for targets of 115 above 140 

Fundamental View

·         The stock is trading at a book value of 85.

·         The stock is trading at P/E of 4.71 to industry P/E of 17.07.

·         FII doubled their stake in the company from Jun 14 (7.52) to Sept 14 (15.13).

·     With a market capitalization of 730 odd Cr, the company on an average is marking 30Cr profits per quarter.

·         The 120Cr profits per annum stock can be a good candidate for re-rating.

Raju V Angadi

Equity Research Analyst

To Learn simplified objective approach applying Advanced concepts of Elliot Wave Theory in conjunction with Dow Theory & Psychological traits to trade with some common sense & optimize your investment / trading decisions contact on:

 rvangadi@googlemail.com  (OR) +91 78291 55900

Note: This report is for educational purpose and the specific levels have not been mentioned.