Jain Irrigation : Drip- Drip- Droppp !!
Jain Irrgation is trading in a descending parallel channel. You can see 3 support on channel from where it has earlier bounced. It has also formed head & shoulder on weekly chart. Percentage target of the pattern is 83% down from 46 level which comes at Rs 7. Lower support line of channel is also at Rs.7 If you go back to period of 2003-2006 then you will find that it had made swing top of Rs 25 which could as a support for short term. 21-25 could be the zone where short term panic could be formed for a minor bounce towards 34-45 level but that should be used to exit position. Counter is bullish only on close above 76 on weekly basis. Those who take risk must be ready to see more down side or keep SL below 18.
We do not advise any buy as the fundamentals are all against the company and V shape recovery can be possible only when some PE enter into the company owing to its strong product line in drip and micro irrigation. Company is also engaged into processed food export.
Let the market settle down or create a panic bottom which mean market opens lower, move down to make a panic low and then jump to close at the day high which must be near or above the close of previous day. Most important thing is that volume must be too high to indicate that retailers, HNIs have offloaded in panic and market movers have entered for mean reversion or value buy.
We do not advise any buy as the fundamentals are all against the company and V shape recovery can be possible only when some PE enter into the company owing to its strong product line in drip and micro irrigation. Company is also engaged into processed food export.
Let the market settle down or create a panic bottom which mean market opens lower, move down to make a panic low and then jump to close at the day high which must be near or above the close of previous day. Most important thing is that volume must be too high to indicate that retailers, HNIs have offloaded in panic and market movers have entered for mean reversion or value buy.
Trade active:
Whatever we had written in counter is exactly happened today. We are now in buy at 23.50 with sl of 16 for target of 34-41-47
Trade active:
SL is move up to 22 on daily closing basis. Stock had touched 29.90 from our buying level of 23 .It means return of more than 25% in just 7 days of time.