TECHNICAL REPORT ON UNITED SPIRITS
Tuesday, September 29, 2009 1:36 pmCURRENT PRICE – 902
| BSEId :532432Â Â Â Â NSE Id :MCDOWELL-N
ISIN Id :INE854D01016 |
INDUSTRY- Breweries & Distilleries |
| Market Cap- 10,003.48 | Book Value- 214.46 |
| EPS (TTM) – 33.15 | Price/Book – 4.32 |
| Face Value – 10.00 | P/E – 27.96 |
| Div(%)-15.00 | Industry P/E – 31.89 |
PRICE INFORMATION
| All Time High   2189.95 | All Time Low      27.55 |
| 52 Week High   1471.00 | 52 Week Low     426.05 |
| RECOMMENDATION- BUY | TARGET – RS. 985, 1075 SL 820
TIME FRAME -3 TO 4 WEEKS |
DAILY CHART
CHART INTERPRETATION AND RECOMMENDATIONS-
In July 2009 the stock started an up move from 822 and went all the way to 1075, from where it retraced almost all of its gains and retested 828 in the month of August 2009. Again it started to move upside from these levels but could not manage to make a successive high above 1075 as it found resistance around 980 and ultimately result fell back to support levels (830-840). Now the stock is moving up again from the support levels and it has managed to give a weekly closing above its resistance line / downward sloping trend line. A close look at the chart will reveal a formation of Double Bottom Pattern, which is considered to be a reversal pattern. Volume pattern, MACD crossover and RSI indicators are also suggesting strength in the up move. The stock price has also managed to close above its 65 days EMA, which stands at 896. All in all we recommend a Buy on the stock for the targets of 985 and 1075, with a stop loss of 820 in 4 week time.