Stocks Trading in A Consolidation Base

Cholamandalam Invest Stock

 
Cholamandalam Invest stock is worth watching as the stock is forming a 19-week, 22% deep Consolidation Base. The current price is only 5% away from its ideal buy price of INR 601. 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 9.60% away from the 10-week moving average.
 
In the last twelve months, Cholamandalam Invest has rallied nearly 143% as compared to 51.6% for the Nifty500. It has a Relative Strength Rating of 59. 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 Cholamandalam Invest can maintain this outperformance, it could make sense as a CANSLIM trade.
 
Cholamandalam Invest 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, Cholamandalam Invest has an EPS Rank of 57, which is okay but fails to impress a growth stock investor. The earnings and sales for the stock have grown by 12% and 19%, respectively over the past three years. Its 3-years earnings stability is 8, on a 0 to 99 scale (lower the better). Over the past five years, the earnings and sales for the stock have grown by 17% and 20%, respectively. The 5-years earnings stability is 7. The return on equity for the last reported year is 17%.
 
The stock belongs to the industry group of Finance-Consumer Loans. You would still want to see some improvement in the industry group rank for the group. The current industry group rank is 91. The current price of Cholamandalam Invest is -5% off from its 52-week high price and 164% above its 52-week low price.
 

Tasty Bite Stock

 

Tasty Bite stock is forming a 9-week, 23% deep Consolidation Base. This is a bullish sign, but it is still very deep in its base. The current price is still 13% away from its ideal buy price of INR 21487. A prudent approach would be to add the stock to your watchlist and perform a detailed analysis on it. This means you can be ready to pounce as the stock breaks out to the ideal 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 0.83% away from the 10-week moving average.

 

In the last twelve months, Tasty Bite has rallied nearly 54.3% as compared to 51.6% for the Nifty500. It has a Relative Strength Rating of 57. 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 RS Line remains in a downtrend for the last four weeks. However, this is not unusual for a leading stock as the stock sets up base for its next leg up or at the very beginning of a new trend. At this point, the overall long term trend of the line is upward. If Tasty Bite can maintain a healthy upward move, it could make sense as a CANSLIM trade.

 

Tasty Bite stock has strong institutional support. The Accumulation/Distribution Rating of 'B-' represents heavy institutional buying over the past 13 weeks. Although the number of institutions holding the stock dropped in the last quarter, the number of shares held by the institutions increased at the same time.

 

On the earnings front, Tasty Bite has an excellent EPS Rank of 97, which indicates consistency in earnings. The earnings and sales for the stock have grown by 13% and 9%, respectively over the past three years. Its 3-years earnings stability is 8, on a 0 to 99 scale (lower the better). Over the past five years, the earnings and sales for the stock have grown by 17% and 15%, respectively. The 5-years earnings stability is 8. The return on equity for the last reported year is  21%.

 

The current price of Tasty Bite is -13% off from its 52-week high price and 92% above its 52-week low price. The stock belongs to the industry group of Food-Packaged, which is exhibiting excellent strength in the current market environment. The current industry group rank is 37.

 

The stock appears on our idea lists: Growth 50, Minervini Trend Template.