Oriental Aromatics - Positional Trading
I have based my analysis primarily on Stan Weinstein's methodology with some variations. Price structure, 30 Weekly MA, Relative Strength and Volume are key elements of Stan Weinstein's framework. I have added the Delivery percentage (not to be confused with Delivery Volumes) of last two days and the average of the previous week and RSI indicator to get a further confirmation of momentum.
The timeframe that I have referred to is Weekly which is suitable for slightly longer duration of trading or even investment. The advantage is analysis can be done post market hours and the weekly timeframe ensures lower price whipsaws.
Entry strategy- Once the conditions are met on Weekly timeframe, I stagger my entry to 20-25% at the breakout weekly candle and then enter the balance 75% on retracement. Stan Weinstein advises staying with trend so long as the upward trend continues and 30WMA is not breached. Since Nifty 50 is near ATH, I do a slight modification for Exit- if stock decisively closes below 50 DMA, I exit 50% and if it breaches the nearest swing low, I make a total exit. It is important to protect capital and hence risk management is key to grow account size.
About the company- Oriental Aromatics is engaged in the Business of manufacturing Fine chemicals i.e. camphor, perfumery & specialty aroma chemicals, fragrances and flavours. Company is one of only ten completely integrated flavour, fragrance and aroma chemical manufacturing companies in the world. Source: Screener.in
CMP INR 925
RoE 20.2
Debt 0.14
Equity Capital INR 16 CR
PAT INR 114 CR
Promoter Holding 74%
5 year Sales CAGR 15%
5 year PAT CAGR 36%
Operating Margin 22%
Disclosure: Not an investment or trading buy/sell advice. This is for learning purposes and exchange of knowledge. Figures mentioned above rounded off.
The timeframe that I have referred to is Weekly which is suitable for slightly longer duration of trading or even investment. The advantage is analysis can be done post market hours and the weekly timeframe ensures lower price whipsaws.
Entry strategy- Once the conditions are met on Weekly timeframe, I stagger my entry to 20-25% at the breakout weekly candle and then enter the balance 75% on retracement. Stan Weinstein advises staying with trend so long as the upward trend continues and 30WMA is not breached. Since Nifty 50 is near ATH, I do a slight modification for Exit- if stock decisively closes below 50 DMA, I exit 50% and if it breaches the nearest swing low, I make a total exit. It is important to protect capital and hence risk management is key to grow account size.
About the company- Oriental Aromatics is engaged in the Business of manufacturing Fine chemicals i.e. camphor, perfumery & specialty aroma chemicals, fragrances and flavours. Company is one of only ten completely integrated flavour, fragrance and aroma chemical manufacturing companies in the world. Source: Screener.in
CMP INR 925
RoE 20.2
Debt 0.14
Equity Capital INR 16 CR
PAT INR 114 CR
Promoter Holding 74%
5 year Sales CAGR 15%
5 year PAT CAGR 36%
Operating Margin 22%
Disclosure: Not an investment or trading buy/sell advice. This is for learning purposes and exchange of knowledge. Figures mentioned above rounded off.
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