Analyzing India

This Stock May Out-Perform The Broader Markets


The Indian market suffered a severe throwback, having broken out above the 10950 mark on Wednesday but returning all those gains by end of the week. The market breadth has not been healthy at all and remains a matter of concern. Amid such turbulence, this stock deserves some attention, as it is showing some signs of an up-move and likely relative out-performance against the broader markets.

Jubilant Life Sciences Ltd (JUBILANT.IN)

  • JUBILANT.IN is presently in a symmetrical triangle formation, which it has attempted to break out from.
  • In the process, it has penetrated the 50-DMA, 100-DMA and 200-DMA and has closed above these levels.
  • The RS Line is seen inching higher and, in the process, has also crossed above its 50-DMA. A similar crossover of the RS Line above its 50-period MA can be observed on the weekly charts.
  • The price ended above the upper Bollinger band. Some temporary pullback inside the band may be seen, but an upward breakout is possible if not likely.
  • MACD remains in continuing buy mode; PPO remains positive.
  • This stock has potential to relatively out-perform the broader markets. If the present pattern is resolved on the expected lines, the stock may return ~12% from the present level of 757. Any move below 725 will be negative for the stock.

Milan Vaishnav, CMT, MSTA
Consulting Technical Analyst

Disclosure pursuant to Clause 19 of SEBI (Research Analysts) Regulations 2014: Analyst, Family Members or his Associates hold no financial interest below 1% or higher than 1% and have not received any compensation from the Companies discussed.

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Milan Vaishnav
About the author: , CMT, MSTA is a qualified Independent Technical Research Analyst at his Research Firm, Gemstone Equity Research & Advisory Services in Vadodara, India. As a Consulting Technical Research Analyst and with his experience in the Indian Capital Markets of over 15 years, he has been delivering premium India-focused Independent Technical Research to the Clients. He presently contributes on a daily basis to ET Markets and The Economic Times of India. He also authors one of the India's most accurate "Daily / Weekly Market Outlook" -- A Daily / Weekly Newsletter,  currently in its 15th year of publication. Milan's primary responsibilities include consulting in Portfolio/Funds Management and Advisory Services. His work also involves advising these Clients with dynamic Investment and Trading Strategies across multiple asset-classes while keeping their activities aligned with the given mandate. Learn More
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