Thursday, 4 July 2024

A TECHNICAL UPDATE ON STEEL STRIPS WIRE LTD-4.7.2024

 

STEEL STRIPS WIRE LTD

SECTOR: -- IT IS ENGAGED IN THE BUSINESS OF MANUFACTURING STEEL WHEEL RIMS AND ALLOY WHEEL RIMS WHICH ARE USED IN AUTOMOTIVE VEHICLES . 

TTM/EPS;-Rs.14.01 (+13.15%yoy)

TTM/PE:-16.14 /SECTOR PE:-22.99

BOOK VALUE:-Rs.85.75

PRICE TO BOOK VALUE:-2.65

DIVIDEND YIELD:-0.44%

FACE VALUE: - Rs.1/

EQUITY: - 15.69cr.

SHARE HOLDING PATTERN:- PROMOTER—30.70% & PUBLIC---69.30%(low promoters holding).

All-Time High: -- 299 made on 16.10.2023.

All-Time Low: -- 3.06 made on 2.4.2009.

Recent Low: - 190.55 made on 4.6.2024. 

Open-225--High-230.95--Low-223.98—Close-226.22 on 3.7.2024 

Support:218.70/217.60/212.30/211.05/206.55/190.55. 

Resistance:227/233/237/238.50/243.60/247/250/258/259.20/262.55/273.35/275.85/282.50/286.50/289.80/297.90/299/329/346/366/474. 

(Bold and underlined figures are most important) 

After hitting an all-time high of 299 on 16.10.2023 it corrected and made a bottom of 190.55 on 4.6.2024. Technically it is shaping up well now but may take some time to get into strong up momentum track but the attractive thing is that the current price is a good entry point because the down side risk from here seems to be limited in the range of 216.15---212.30, if it has the strength it should not break 216.15 on the closing basis, but break below 212.30 can drag it down. Similarly moving up its strong and broad resistance could be at 227---234---245---258---259.20----273.50---277.35---299, if it moves 227 & 234 and sustain on the closing basis then it may gain some strength for the continuation of the up move but it may get into strong up momentum track once it moves above  259.20 and sustain on the closing basis and finally if it moves above 277.35 and sustain on the closing basis then it could retest its all-time high of 299 or may go beyond it also.   

In view of the above observation, it is suggested that investors can accumulate the stock now and on the decline but not below the range of 216---212.30 with a stop loss of 210. The stock has the potential to appreciate by 20—30% or more in 8-10 months from here. 

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.

 

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