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ASIAN PAINTS LTD.ASIAN PAINTS LTD.ASIAN PAINTS LTD.

ASIAN PAINTS LTD.

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ASIANPAINT trade ideas

Asian Paints - Buy on Dips OR Wealth Erosion?Asian Paints has been a consistent compounder in Indian decorative paints Industry. With increasing Crude Oil volatility expectation from February due to Russia's decision to not sell Crude Oil to countries respecting EU's $60 price cap, the share has corrected from 3600 to 2800 levels ~ 22% The recent earnings report further accentuated the concerns of investors, with slowing sales growth, but rising Operating Margins nonetheless. As per the management, it was a result of prolonged monsoon in October, which caused a tepid festive season sale. The rising competition in Paints industry is not oblivious to anyone either, Grasim, JSW have major capex commitments. Will this lead to margins erosion, which when combined with slow Revenue growth, is a recipe for Wealth Erosion? or will Asian Paints continue to enjoy super normal profits from its yet undisturbed monopoly? On the Technical side, the share has come back to 140 day EMA on weekly, which has been an undefeated support zone since 2009. However, the same trend was also observed for Berger Paints with 100 day EMA, but we recently saw how it not only broke it clearly, but has been trading below it for around 1 year now. It will be very interesting to see if Asian Paints can bounce from here, but in my opinion, there aren't many/any positive triggers for the market side, apart from a shining decade long outperformance record of wealth creation. At a PE of 70 and 10 Year Median PE of 58, it seems like the worst is yet to come. However, my guess is as good as yours. I believe it might be a good time to take a step back, and reconsider our blind faith in perceived bluechip companies with unsustainable PE levels and single digit earnings growth, like Pidilite as well. I do not intend to attract any criticism, and would like to clarify that it is my personal opinion, and I can be completely wrong at it. As a fellow swimmer in the tides of the markets, I have learnt that one can never be too cautious, only too overconfident.
NSE:ASIANPAINT
by Aayush_Rungta
Can We See A Bearish Trend In ASIANPAINTS?Hello traders, It is a quick update about Asian paints. Security has made a downward channel. After the rectangle breakout, it made another rectangle pattern. The 3033 level is an essential support level to keep an eye on. A breakout will intensify the bearish atmosphere. We can expect a new low based on the price action of the second rectangle pattern If support is breached. Bulls can't enter without a clear breakout of the downward channel. You will be notified when it reaches my level. @Money_Dictators
NSE:ASIANPAINT
by Money_Dictators
Asian Paint Cmp 2909 dated 13-1-2023 Hammer Candle @ downtrendAsian Paint Cmp 2909 dated 13-1-2023 1. Hammer Candle after correction of 7 %. Buy above 2930 for target 2975-3025-3085 SL 2850 Disclaimer : I am not a SEBI registered Analyst so please do your own Analysis before taking any action. The above view is shared just for educational purpose. By no means shall be responsible for any losses amounting out of it incase if any trades on it. It is just a view, please trade at your own risk.
NSE:ASIANPAINTLong
by SHEETAL_UDESHI
Asian Paints: How to play a channelAsian Paints The Chart set up - Since Oct 2022 the stock has been trading in a channel - chart is not strong but with crude prices stabilizing at lower side it favors the sector as oil is one of the major raw material. ___________________________________________________________________________________________________________________________ Trading plan One way to trade this is : Wait for the stock to give a sustained breakout from the channel. Ideally a 3 day close beyond the channel limits should be good cue. Then play for the size of the channel in that direction (roughly 150-180 points in the direction of breakout can be looked as target in this case) Second way to trade this Play for a Non directional trade The limits of the channel are roughly 3240-3244 on the upside and 3018-3030 on the downside Given the set up, consider a short strangle strategy to start with. Sell 3250 Call and Sell 3000 Put In case stock moves out of range, have a plan to Adjust your strategy to a directional one. ____________________________________________________________________________________________________________________________ Understanding reward potential and risk profile In scenario 2: The Strike Price chosen covers the known risk (Channel limits) It provides a profit potential of approximately 13400 per strategy lot (approximately 11.5% ROI on margin requirement). Take advantage of time decay in case the stock stays within the range. In addition, there is in built protection against loss for a fall up to 2933 on the downside and 3317 on the upside till 25 Jan 2023 expiry day. This should give ample scope to adjust strategy in case stock moves out of range. __________________________________________________________________________________________________________________________ Do let me know if you find the analysis and insights helpful. To trade with me Like and Follow for more trading ideas like these...!!! Take care & safe trading...!!! Disclaimer - The view expressed here is my personal view - Past performance is not a guarantee for future predictions - I have been wrong in the past and can be wrong again in future too - Use this for educational purpose - Any decision you take, you need to take responsibility for the same - It's your hard earned money. Treat it wisely - Trade / Invest keeping in mind your trading style, goals and objectives, time horizon & risk tolerance - if trading in F&O, understand that F&O trading involves risk - Do take proper risk management measures - Do your own analysis and consult your financial adviser if need be
NSE:ASIANPAINT
by indiamarketoutlook
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