Grasim Inds Trading In A Consolidation Base!!

Grasim Inds. stock is worth watching as the stock is forming a 6-week, 11% deep Flat Base. The current price is only 2% away from its ideal buy price of INR 1614. Aggressive investors could use any tight area breakout inside the base as an opportunity to initiate a small position. A conservative approach may be to add the stock to your watchlist so that you are ready to pounce if it breaks out to the traditional entry point.

 

The key trend lines, 10 and 40-week moving averages are at a comfortable position. The current trends of both the averages are upward and the 10-week moving average is trending above the 40-week moving average. The current price of the stock is trading around 3.85% away from the 10-week moving average.

 

In the last twelve months, Grasim Inds. has rallied nearly 112.4% as compared to 52.5% for the Nifty500. It has a Relative Strength Rating of 61. We definitely would like to see improvement in the rating. At this point we are taking a step back and focusing on the RS Line.

 

The Relative Strength Line of the stock is offering a lot of encouragement to investors. It has been making good progress in the last four weeks. The overall long term trend of the line is also trending upward. If Grasim Inds can maintain this outperformance, it could make sense as a CANSLIM trade.

 

 Grasim Inds. stock has a strong institutional support. The Accumulation/Distribution Rating of 'A+' represents heavy institutional buying over the past 13 weeks. Although the shares held by institutions dropped in the last quarter, the number of institutions holding the stock increased at the same time. This shows increasing interest among the institutions.

 

On the earnings front, Grasim Inds. has an excellent EPS Rank of 85, which indicates consistency in earnings. The earnings and sales for the stock have grown by 34% and 5%, respectively over the past three years. Its 3-years earnings stability is 20, on a 0 to 99 scale (lower the better). Over the past five years, the earnings and sales for the stock have grown by 1% and 20%, respectively. The 5-years earnings stability is 33. The return on equity for the last reported year is 7%.

 

The stock belongs to the industry group of Bldg-Constr Prds/Misc. You would still want to see some improvement in the industry group rank for the group. The current industry group rank is 88. The current price of Grasim Inds. is 2% off from its 52-week high price and 139% above its 52-week low price.

 

The stock appears on our idea lists:  Minervini Trend Template