Berger Paints - Long Term Analysis with Accumulation LevelsThe above chart is that of a daily time frame of Berger Paints Stock. The stock has a long term resistance at 840-850 levels and a long term support at 680-700 with a short term support/ resistance at 770-780 levels. Recently the stock has broken the short term support zone of 770-780 with a big bearish red candle showing huge resistance. This was trigerred by a poor performance of Asian paints which is the market leader.
Comments on Stock:
Berger Paints is a consistent compounder which has given stable multibagger gains for more than a decade. This is a quality paint stock which must find place in your portfolio. The long term story of this stock is still intact.
Accumulation Levels:
The stock is now consolidating within a large range of 680-840 for the past 10 months. Thus one should keep accumulating the stock between these levels with a long term view. Now at present, you can look to accumulate the stock at 680-700 levels.
Recommendation for Investors:
Investors with a significant investment in the stock can opt for a covered call strategy by selling calls anywhere between 850-800 CE and hedge their holdings.
Recommendation for Traders:
Traders can employ several methods to benefit. However I will be suggesting only one approach i.e. Deploy a Short Straddle Approach by selling calls of 840/850 CE and selling puts of 680-700 PE.
