Sintex Industries Ltd
Sintex has two divisions- textiles and plastic. The plastic division which started in the year 1975 has diversified manufacturing capabilities and effective network spread across India. Effective utilization of capabilities has resulted in the company posting 36% net profit growth in Q2 and 11% in Q3.
On 15th October 2015, even after impressive Q2 results stock price could not withstand bear attack and sold off exactly at anticipated trend line level as marked on the chart. Repeated attempts from bulls to surpass the trend line resistance was a mere failure. Again on 13th Jan 2016 stock crashed 6% after better than expected Q3 results. This phenomenon clearly shows us that, only the underlying fundamentals are not sufficient for stock price movement. The technical analysis which acts as a barometer of public sentiment will help us to find out possible reversal points.
Price action strategy
The stock is finding required strength for the short term up move towards critical zones placed at 83 and 91 levels. As per the Elliot Wave followers, a current stock behavior is called as Ending Diagonal pattern, which gives us a clue that above view is invalidated on stock price closed below 63.
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Registration Status: I am not a SEBI registered Research Analyst.
As per SEBI (RESEARCH ANALYSTS) REGULATIONS, 2014 and clarifications provided by SEBI “Any person who makes the recommendation or offers an opinion concerning securities or public offers only through public media is not required to obtain registration as research analyst under RA Regulations.”
Disclaimer: I do not hold any position in SINTEX.