FORTIS looks lood positionallyChart Structure:
- Price came out of Darvas Box consolidation on 17th August.
- Consolidation was happening from May to August.
- After the Range breakout, the price took a little pullback.
Volume & Deliveries:
- During the consolidation phase, many days with positive volume activities were witnessed.
- Average Deliveries were 10.79 lac shares per day before Darvas Breakout.
- During breakout the average deliveries per day were 38.60 lac shares.
- In total, 7 sessions during the breakout, a total of 2.70 crore shares were delivered.
- Out of 2.70 crores, 41.86 lac shares were purchased by The Big Bull (Rakesh Jhunjhnwala)
- During the month of July, 19 Mutual Funds have increased their Holdings in Fortis whereas 8 Mutual Funds has decreased their holdings.
Relative Strength:
- From 8th March, the stock started outperforming Nifty in absolute terms in 6 months TF & from Adaptive RS date 16-Feb 2021
- Since then, the stock is outperforming Nifty as well as the Midcap index.
- Stock is outperforming the benchmark index and its sectoral index in 1W, 1M, 3M, 6M, 1Y & 2Y Timeframes.
- First Spread chart breakout happened on 18th August & the Second Spread breakout happened today on 27th August.
- With its performance in all timeframes and spread breakouts, it is established that the stock is an absolute outperformed, a Tendulkar indeed.
Company's Financial Performance:
- Fortis's Sales growth QoQ is 13% & 133% YoY
- PBT Growth stood at 342% QoQ & 1179% YoY
- PAT growth stood at 514% QoQ & 6700% YoY
- Overall company has posted super Quarterly numbers.
Sectoral Performance:
- A breakout happened after a consolidation of 2 months in the Healthcare Index (custom) and the index rose by 19.50% from that point. Another breakout happened recently on 16th August.
- Healthcare index is outperforming Nifty & the Midcap index in both short term (55) & long term (123)
Other Note-worthy points:
- Due to the geopolitical tensions happening due to the Afghanistan situation and due to the fear of the third wave of Covid, the institutional money has been shifting towards defensive sectors, like FMGC, Pharma etc.
- In this point, Big Bull has also increased his positions in Fortis, now owning more than 5% of the company.
- Due to these sectoral tailwinds and other factors, the stock is expected to perform well.
Most of the above-discussed factors look positive in favor of Fortis. The stock giving favorable returns positionally is probable.
