Glenmark is making lower high lower low pattern from 2017 on monthly chart
Every since it didn't try to change its pattern.
During the Mar'20, it formed a new low.
It tried to alter it's pattern by breaking the previous low in June 20.
However, it didn't happen and since then it is near the previous lows only.
Now is the TIME TO DECIDE whether or not the market is going alter the GLENMARK's pattern
Reason Being:
1) Fundamental -
- PE of Glenmark is 17.53 while the sectoral PE is at 41.03 which clearly indicates that the share is trading at cheaper levels.
- Over the last 5 years, revenue has grown at a yearly rate of 10.13%, vs industry avg of 7.29%
- Over the last 5 years, net income has grown at a yearly rate of 29.93%, vs industry avg of 3.94%
- Q3 results are really good showing a strong base in Indian Market.
Fundamentally, It is strong and based on the valuations, it is available at a very good price.
2) Technical -
- It came out of the Descending channel which explains that it is on making new highs.
- So, if the Blue lines are broken, it will reach ultimately to 1262 atleast.
- Based on the trendlines, it is evident that if it breaks the red trendline marked in the graph, it gives a confirmation that the share will take
the fall and ultimately reach to a new low which could be around 119 probably.
- However that cannot happen based on the Fundamentals. Company is not that weak to touch 119
- So, we can expect a breakout tomorrow considering the support line. If the Blue lines are broken, 700 level can be seen.
If we see the 520+ Level on monday, we can expect the end of the lower high lower low pattern
Every since it didn't try to change its pattern.
During the Mar'20, it formed a new low.
It tried to alter it's pattern by breaking the previous low in June 20.
However, it didn't happen and since then it is near the previous lows only.
Now is the TIME TO DECIDE whether or not the market is going alter the GLENMARK's pattern
Reason Being:
1) Fundamental -
- PE of Glenmark is 17.53 while the sectoral PE is at 41.03 which clearly indicates that the share is trading at cheaper levels.
- Over the last 5 years, revenue has grown at a yearly rate of 10.13%, vs industry avg of 7.29%
- Over the last 5 years, net income has grown at a yearly rate of 29.93%, vs industry avg of 3.94%
- Q3 results are really good showing a strong base in Indian Market.
Fundamentally, It is strong and based on the valuations, it is available at a very good price.
2) Technical -
- It came out of the Descending channel which explains that it is on making new highs.
- So, if the Blue lines are broken, it will reach ultimately to 1262 atleast.
- Based on the trendlines, it is evident that if it breaks the red trendline marked in the graph, it gives a confirmation that the share will take
the fall and ultimately reach to a new low which could be around 119 probably.
- However that cannot happen based on the Fundamentals. Company is not that weak to touch 119
- So, we can expect a breakout tomorrow considering the support line. If the Blue lines are broken, 700 level can be seen.
If we see the 520+ Level on monday, we can expect the end of the lower high lower low pattern