DREDGING CORPORATION OF INDIA LTD
Open-431.80--High-437.95--Low-420—Close-423.35 on 18.8.2023.
Support: 395.60/388.10/359.05/353.05.
Resistance:456.45/457.95/476/479.30/496/525.05/549.45/570/593/626.05/664/720/738/755/784.80/884/922/970/980/1011.90/1026/1064/1109/1118/1163.90/1200.20/1299/1355.60.
All-Time High:-1355.60.
All-Time Low:-121.
(Bold and underlined figures are most important)
It made its all-time high of 1355.60 on 15.11.2007 and thereafter it started correcting with in between rallies and sometime sharp up rallies and finally made a bottom of 121 on 24.3.2020. It took 12 years and 4 months to find a lasting bottom as of now, which is phenomenally long period. Please note that it made bottom at 121 but it gave confirmation of bottoming out at 248 in June-2022 and since then it has been consolidating and steadily moving up with intermittent correction from time to time. Therefore looking at the overall technical chart setup now, it seems that it has bottomed out for good and may be heading for a moderate to big rise in coming months/years. It may take some time to catch up the strong up momentum. The trend is up.
Please note that if it has the strength then going down it should not break 412.40 on the closing basis and sustain and if it has bottomed out (according to me yes) then it should not break 388 and in worst case 353 on the closing basis and if it does break then it can slide further. So 412.40 will be an alert point and below 388 will be an exit point on the closing basis for the long trades.
Similarly moving up it will face strong resistance at 456.45---479.30 (thereafter see the resistance points mentioned above) if it closes above 456.45 and sustain then it will gain good strength and it may pick up strong and accelerated up momentum once it moves above 479.30 and sustain on the closing basis then the real upside fireworks may begin.
In view of the above observation, it is suggested that investors can accumulate the stock now and on the decline up to 388 and not below this in a staggered manner with a strict stop loss of 370 on the closing basis. It has good upside potential and it could double from here or more in a time frame of 12--15 months.
NOTE: - It is a technical assessment of the stock as of now, the
technical interpretation changes with the price movement and time, therefore it
has to be reviewed at regular intervals, furthermore investors are advised to look into
fundamental, financial details of the company and last but not the least
management perception for the future of the company before taking investment
decision.
Disclaimer:-The view expressed here are solely of the author and he is not at all responsible in any way for the outcome of the trade you enter based on the above view.
Kindly note that make your cost your stop loss
in favorable trade and then trail it as the price move up/down
to gain maximum profit and avoid losses. Use support and resistance levels as
entry, exit, target and trailing stop loss points. DO NOT TRADE WITHOUT
STOP LOSS.
Note: Price stated
here are of spot market.
Contact me for strategic guidance to enter and
exit trade.
Thanks
Narendra Kumar Surana
Mobile—8240951127/9831313654.
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Thank you for sharing your views.