Asian Paints stock price at good support zone?

Jan 31, 2023

ASIANPAINT
Disclaimer:
This is just an analysis of Asian Paints stock from dividend yield point of view and technical price indicators point of view. Information provided here is only for educational purpose and in no way constitutes as an investment, trading, or financial advice. Please do your own research or consult your financial advisor before taking any investment or trading decision.

Dividend Point of View:
Company has regularly paid dividend in last 22 years.
Average dividend pay-out ratio in last 10 years is about 45%.
EPS of the company is steadily increasing.
The last dividend paid by company was for Rs.19.15 per share which translates to a dividend yield of 0.7% at today’s closing price of Rs.2726

Technical Point of View:
Historically, price has stayed mostly above EMA200 on weekly basis and EMA50 on monthly basis.
At present, price is less than 10% up from EMA200 (Rs.2541) and EMA50 (Rs.2483) on weekly and monthly basis respectively.
It is facing resistance just below 3600 levels on upside.
At today’s closing price of Rs.2726 and considering EMA200 and EMA50 as support and 3600 levels as resistance there is an upside possibility of about 32% with a downside risk of about 10% .

What can go wrong?
No one has control over the price of share. So, the price can go up as well as can go down. Based on EMA support zone, there is a downside risk possibility of about 10% though not limited to just 10%. Downside risk is calculated based on today’s closing price of Rs.2726 with EMA50 on monthly basis at Rs.2483 and EMA200 on weekly basis at Rs.2541. Thus, downside risk will vary based on entry price and exit price level.