A TECHNICAL VIEW ON ASHAPURA MINECHEM LTD-17.9.2023

 

ASHAPURA MINECHEM LTD

SECTOR: -- The Company is engaged in the mining manufacturing and trading of various mineral and its derivative products.

FINANCIAL DATA 

                            F.Y-2022-23          MAR-2023 Qtr          JUNE-2023 Qtr

Sales: -                222.69 Cr                    46.69cr                   90.70cr                      

Net Profit: -          -7.01cr                        7.58cr                    42.26cr

E.P.S:-                    -0.77                           0.83                          4.62   

Cash-E.P.S:-          -0.92                           1.11                          4.90

O.P.M:-                  14.35%                     33.90%                    47.11%

N.P.M:-                  -3.15%                       16.22%                   46.58%

Equity: - 18.30 cr,Face Value:-2,Book Value:-56.95, Price/Book:-5.71(High),Dividend Yield:-0.00,Share Holding Pattern:- Promoters—45.33%  & Public---54.67%, Market Cap:-2976cr.

TTM (E.P.S):-19.74(+176.34), TTM (PE):-16.48(High), Sector (PE):--6.61.

Data Source: - www.bseindia.com & www.moneycontol.com. 

All-Time High:--447.50 made on 2.1.2008.

All-Time Low: -- 5.88 made in 2001.

Recent Low:-70.80 made on 18.11.2022. 

Open-312.80--High-330--Low-308—Close-325.40 on 15.9.2023. 

Support:315/257.30/244.90/216.15/183.25/175.25/163.50/116.50. 

Resistance:344/360/388.75/398.50/414.80/426.40/447.50. 

(Bold and underlined figures are most important) 

It made its all-time high of 447.50 on 2.1.2008 and thereafter it corrected with in between relief rallies and made a final bottom of 8.80 on 3.4.2012 and thereafter moved in a range where the upper band was 176.80 and finally after a long time it gave  a breakout from this range on 3.8.2023 and appreciated by 84%  in just 30 trading sessions. The valuation may look expensive financially & fundamentally at this juncture but technically it is looking strong on the daily, weekly and monthly chart, therefore likely to move up further in coming days. The long term trend is up as of now. 

Moving up from here it will face strong resistance at 334---344---360---382---447.50, it may correct at any of these points and resume the up move again or may it may fizzle out also. Please note that if it closes above 360 and sustain on the closing basis then it could retest its all-time high of 447.50 or may go beyond it also. Furthermore if it moves above 447.50 and sustain on the closing basis then the further upside target could be 460---513---567---615---668---719---777---886. 

Similarly moving down from here it has strong and critical supports points at 280---257.30---244.90---216.15---175.25 Please note that if it has the strength then going down it should not break 280 on the closing basis and if it breaks it then the last potential support point would be at 257.30 and break below this could drag it down much lower. 

In view of the above observation, please note that its critical range is 360---344---307---280 and it is evenly poised now. Therefore for investors it is suggested to consult their financial advisor before investing in the stock. For traders it is suggested to take long trade only if it moves above 360 and sustain on the closing basis with a stop loss of 340 on the closing basis or on decline near 280 but not below this with a stop loss of 270 because it could correct from the present price. Please note that taking long position above 360 could be relatively safe. 

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 because that too keeps on changing 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

suranank@gmail.com

Mobile—8240951127/9831313654.