SNOWMAN LOGISTICS- A great opportunity to invest in!

 Hello Readers!

STOCK NAME:     SNOWMAN LOGISTICS 

TICKER NAME:   SNOWMAN

CMP-                      RS. 61.25

TARGET -              RS. 85, 118

STOPLOSS-           RS. 55

Snowman Logistics grabbed eyeballs in 2015 at the time of its IPO. The price band was Rs. 44-47 and the stock listed at Rs. 75.  Back then, the market was not as interesting and volatile as it is today and this return meant serious and rare money for investors. 

Today the stock is trading lower than its listing price. Over the past 5 years, the stock has been correcting gradually, however, that does not undermine the importance of logistics in a country like India. 

A look at the monthly chart shows strong movements. The two signs of strength are:

1) Volume is higher- Indicating accumulation which is supportive for a strong upside

2) The RSI has moved into the overbought zone, which is above 60, indicating strong bullish momentum. 

3) Most importantly, the price has forged a higher-high on the chart (breakout) and is continuing to move in the upward direction

Let's look at the daily chart and determine if there is similar positivity:

1) There is a flag pattern on the daily chart with exponentially high volume as highlighted below in daily chart

2) RSI is continuously in the overbought zone which is a sign of momentum refusing to give up on Snowman  

3) The volume observed on 10th Dec. 2020 was very high even though the price did not budge noticably. I am expecting a strong upside move from here onwards.

It is not every day that we come across such neat textbook patterns. These are easy to spot, read, and execute. 

I hope this analysis helps you make sound investment decisions and learn while you do it. Please feel free to write to me for more explanation at kchamaria1993@gmail.com. You can also join my whatsapp group by following this link. 

To conclude, in the near term, I am anticipating a target of Rs. 85 and long term-  target of Rs. 118 with a stoploss of Rs. 55 from the current market price of Rs. 61.25. 

Happy Investing!

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Regards, 

Kavita Chamaria 

INDOCO REMEDIES- A long term opportunity spotted

 Hello Readers!

Please read the analysis I recently did on INDOCO REMEDIES for a friend. 

I usually do not cover Indoco Remedies but happy to analyse the stock upon request. If you would like stocks to be analysed please write to me at kchamaris1993@gmail.com or comment below!

INDOCO

Current Market Price- 257

Target 412 (+60%)

Stoploss 235 (-8.5%) 

The short term direction for Indoco looks very unclear as the stock is range-bound, and neither the price nor the momentum indicator is giving clear signals about its short term potential action. However, the movement is encapsulated between two trendlines with resistance at 315 and support in the range of 235-240. A breakout beyond either level with help in determining the direction.

The stock is easier to analyse for the long term- It has confirmed a bullish trend in January 2020 as shown on he chart but experienced the covid shock in march 2020. Ignoring trendline breach (as it was sentiment-driven), the stock has clearly resumed the uptrend. The last few months have witnessed higher volumes (blue circle) which means there is accumulation going on in the stock and is positive. As per the weekly chart, I am inclined to believe that a target of 412 is very much possible. At the current price of 257, this means a +60% target with stop loss at 235(-8%). The risk-reward appears promising if one is willing to play the stock for the long term.

I would love to hear your thoughts about this INDOCO. 

Thanks for reading!

Kavita Chamaria 

kchamaria1993@gmail.com