CMP 115

A thread on price pattern , expected movement

In year 2006 it marked highs of 30.2 and after 8 yrs gave breakout in 2014 post which it gave nearly 4X move in 1 odd year to 115 in 2015.
This time again it has Brokeout after 8 yrs in Jun 2023
If the price pattern repeats then a move towards 400 could be seen on the same line and pattern.
Said that, the first targets from here are 220-225 which are in like 90-110% from CMP of 115.

Furthermore, the highest ever monthly volumes were noted in June 2021 when price peaked to 97.6 and now after 2 yrs in June 2023, that price mark has been taken off comfortably with more than avg monthly volumes to take it to 122; quite a positive mark and suggests strength
The company has very very low debt, cash rich & commands good OPM of 17%+ and super positive cashflows

While the promoter holding has reduced but the FII stake has been increased. The reason is conversion of warrants which marks the entry of "ORBIMED"
The entry of orbimed-asia-iv-mauritius-fvci, a foreign co. in similar field was with some dilusion of promoter Mark Saldanha
There has been addition by DII (Quant Mutual Fund) in recent quarter as well which brings down the public float under 38%
SO- shareholding pattern is +ve

The stock is strong, sector is strong and amongst the favourites of many fintwits.
Hiccups may be to shakeout, but stay strong in the crowded bus while many may be forced to get down.




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