Why to 'SELL' when shares are at 'SALE' !!!

Jun 27, 2022

NSE's "END OF SEASON SALE" is here, don't get confused from end of season I mean that may be
this bearish season has came to an end, hence the shares are available at sale try to accumulate
the compounders in your portfolio.

What are the indications that suggest end of the season:-

1. India Inflation Rate: Inflation has formed triple top pattern with RSI bearish divergence
which indicate some decrease in rates, fall in inflation is always good for markets.



2. Nifty: Nifty is taking support at 100DEMA from where it has bounced earlier also. Nifty has
corrected 18% from top hence can show bounce of 5-7% from here.



Though CRUDE OIL and USDINR has not witness correction but it seems that they will also cool-off
and that will be a boost for markets.

Let's head towards showroom where the yearly compounders are at sale!!!

-> PIDILITE INDUSTRIES: avail 27% DISCOUNT
Technical Factors-
-taking support at 100DEMA from where it took support earlier 2 times
-27% correction from top and minimum upside 12-15%
Fundamental Factors-
-10Yrs sale growth 12%, profit growth 14%, price CAGR 29%, ROE 25%
-3Yrs median PE 86.8 and now trailing at 91.4 close to average



-> MINDA INDUSTRIES: flat 38% OFF
Technical Factors-
-taking support at 800 a support range also rising RSI breaching above 50
-38% correction from top and minimum upside 10-13%
Fundamental Factors-
-10Yrs sale growth 22%, profit growth 35%, price CAGR 56%, ROE 15%
-3Yrs median PE 56.1 and now trailing at 73.6 close to average



-> BERGER PAINTS: enjoy 37% price DROP
Technical Factors-
-taking support at pre-covid levels also at 200DEMA
-37% correction from top and minimum upside 11-14%
Fundamental Factors-
-10Yrs sale growth 12%, profit growth 17%, price CAGR 28%, ROE 23%
-5Yrs median PE 72.4 and now trailing at 69.3 below average



-> MASTEK LIMITED: bumper 50% DISCOUNT
Technical Factors-
-taking support at 0.5 Fibonacci retracement level
-50% correction from top and minimum upside 12-15%
Fundamental Factors-
-10Yrs sale growth 14%, profit growth 27%, price CAGR 34%, ROE 15%
-5Yrs median PE 14.9 and now trailing at 20.98 close to average



-> VINATI ORGANICS: flat 27% OFF
Technical Factors-
-taking support around 1720 at lower range
-27% correction from top and minimum upside 10-13%
Fundamental Factors-
-10Yrs sale growth 14%, profit growth 20%, price CAGR 42%, ROE 24%
-3Yrs median PE 44.8 and now trailing at 55.9 close to average



-> ABBOTT INDIA: 35% price drop
Technical Factors-
-taking support in rising upward channel
-35% correction from top and huge upside after range breakout
Fundamental Factors-
-10Yrs sale growth 13%, profit growth 21%, price CAGR 28%, ROE 26%
-5Yrs median PE 47.6 and now trailing at 48.1 close to average



-> RELAXO FOOTWEARS: avail 35% discount coupon
Technical Factors-
-taking support around 940 and RSI bouncing from 30
-35% correction from top and minimum upside 10-12%
Fundamental Factors-
-10Yrs sale growth 12%, profit growth 19%, price CAGR 44%, ROE 20%
-3Yrs median PE 89.2 and now trailing at 105 above average



-> HLE GLASCOAT: bumper 60% price drop
Technical Factors-
-taking support around 2960 and RSI flat ready for bounce
-60% correction from top and minimum upside 14-17%
Fundamental Factors-
-10Yrs sale growth 22%, profit growth 36%, price CAGR 57%, ROE 30%
-3Yrs median PE 48.4 and now trailing at 70.7 above average



-> HONEYWELL AUTOMATION: flat 40% OFF
Technical Factors-
-taking support around 200DEMA
-40% correction from top and minimum upside 12-15%
Fundamental Factors-
-10Yrs sale growth 6%, profit growth 12%, price CAGR 29%, ROE 18%
-3Yrs median PE 72.0 and now trailing at 90.4 above average



-> JBM AUTO: enjoy 45% DISCOUNT
Technical Factors-
-taking support around 380 and RSI bouncing from 40
-45% correction from top and minimum upside 20-25%
Fundamental Factors-
-10Yrs sale growth 13%, profit growth 21%, price CAGR 53%, ROE 16%
-3Yrs median PE 32.4 and now trailing at 31.9 close to average




NOTE: There are more stocks with such fundamentals like TIMKEN ,SCHAEFFLER , etc. but they have not shown
correction so they are not included here and stocks like ALKYL AMINE,ALEMBIC PHARMA, etc. have not shown
any signal of bounce though at attractive levels hence they are also not included.
All, the above charts are weekly and should consider positionally they are 25% yearly compounder from last 10years
will remain for upcoming 10Yrs also.