Signet Industries: ₹17.is trading near the Double bottom support ₹15:50 Resistance near ₹26. A break out from this level can go to ₹45. support: ₹15.50
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This Ugly Duckling, getting more uglier, but worth investing for a long term view. Friends, In my postings some time, I forget to mention the time frame, & approaches. I am following all, long term, short term, & swing trade approaches. The recent Elliot waves counts posted for a long term view only. if you have any quires, please use the comment sessions to follow up.
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Trading at 13.95 now, blow the previous bottom. There is no major support till 9.85
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Not moved as expected. made a further low 11.15
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signet But,still going south,it almost reached the said support level 9.85
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Sir,Good Morning,Can Signet Industries could be bought at current levels.Please..Thanks..
Such queries ware many from my colleagues too. if you are not buying at this level when you will buy. SIGNET was trading at 367 in march 2014, and came down to 260in correction in late 2014, made a demerger that year, I dont remember the ratio, but came down to 100 level. then in 2015 i think there was a spilt 10 to 1 bring the price down to 13 rupee. that year the stock made its historic low 8.70.
what i mean to say is that, i am not interested in penny stock, but i cannot consider this as a laggard as the company is having a 900cr business and it is having a consistent growth, but very slow now. it is definitely a beaten down stock, and in long run it can give good return.
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Made a historic low7.85 and recovered strongly 18% up to 9.25
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next res:11.65
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sausawan
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Hi Sir.. looks like Signet taking support on long term trend line @ 8.55 .. Hopefully it should bounce from this..
What is your expert view on this?
padiyara
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@sausawan Definitely at support now, can bounce to 16 level.
sausawan
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Hi Sir,
Any fresh views on Signet ? I took position recently and its still falling. I thought it would be at rock bottom and would start going up (making a round bottom pattern).
One mistake I did was taking position before price crossing 50 EMA.
Thanks for your nice analysis.
padiyara
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@sausawan, Time and again, it was told that, signet cannot give any short term gain, as the company, after its demerger is in a growing path.
it required enough time to generate wealth that will eventually reflect in to price. In the meanwhile it may have a small pull backs.
Currently it is in a highly oversold condition and can find a resistance near 15 or 16. this post i made earlier.
that time i was expecting pullback from 15 to 26.But it failed and came further down. that support 15 now become a resistance now.
That is the maximum you can expect now in a pullback. the more if we see that can be considered as a bonus. :D
sausawan
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@padiyaraa, - Thanks Sir. I can hold for long. Just wanted to confirm its a good investment and company is sound. Have burnt my hand in fundamentally good companies like KS Oil few years back, which is now good for nothing.
SaurabhMehra
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@padiyaraa - Hello Sir, what's the short term view you have on this? This scrip has been falling and closing on 52 week low.
Would you still recommend this for 6-8 months time frame?
padiyara
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@SaurabhMehra,
The terminology I used ugly duck ling, is actually a term used by sharekhan for upcoming companies and its stocks, which cannot give any major return in short term but, in due course, as the company grows the stock can be a multybagger. I am fully depend on data available through Internet. It shows the company is growing and having a good running. It is having a wide rage of plastic products form racks, pipes, fittings, filter, irrigation materials, and many more. Look Fundamentally stable ( not strong), and having an ROE >20%.
And technically you know why we are discussing it.
I think it can reach a new high above 25, and make target 36 in one to two year time.
One thing I forgot to add. I normally avoid companies with huge debt burden. In signet also it is found very huge debt like 1.72 time , where as a ratio greater that 1 is unsafe.
But the attraction is, that huge Debt is reduced from a 6.8 time to 1.72 in just four years. It looks quiet wonderful debt coverage. And then I checked the product range , ROE etc, found it as a good ugly duck ling category investment for a long term.
SaurabhMehra
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@padiyaraa, thanks for the reply and daily update on this. I will treat this as a longer term investment rather than trading and if I see your NIFTY longer term view as well then likely that mid cap stocks can go up if all goes well.
noumica
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@padiyaraa, sir you study is great as usual, I can learn by the above example how to see the stock performance and to guess the worth of the script.
What is your expert view on this?