Lux Industries stock is worth watching as the stock is forming a 15-week, 23% deep Consolidation base. The current price is only 11% away from its ideal buy price of INR 4350. 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 current trend of the 10-week moving average is still downward. However, if we look at a bigger picture, the long term average (40-week moving average) is in an uptrend. The 10-week moving average is above the trending 40-week moving average. The stock is trading around 3.4% away from the 10-week moving average.
In the last twelve months, Lux Industries has rallied nearly 174.6% as compared to 47.8% for the Nifty500. It has a Relative Strength Rating of 77. 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 Lux Industries can maintain this outperformance, it could make sense as a CANSLIM trade.
Lux Industries stock has 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.
The current price of Lux Industries is -11% off from its 52-week high price and 178% above its 52-week low price. The stock belongs to the industry group of Apparel-Clothing Mfg, which is exhibiting excellent strength in the current market environment. The current industry group rank is 40.
The stock appears on our idea lists: Minervini Trend Template.