VIPIND.IN - VIP Industries Limited
VIPIND.IN marked a peak near 641 in August 2018, formed a lower top 562 and saw a range-bound corrective move that took the stock to 342. The stock has attempted to form a base around that level - given the multiple pieces of evidence present on the charts, the stage is being set for a resumption of the up move.
The JdK RS Momentum has crossed above 100 as of the week ending Friday, February 7th. This implies that the consolidation/correction move has mostly bottomed out. The stock entered the improving quadrant; in all likelihood, it will start relatively outperforming the broader NIFTY500 index. As the stock attempts to breakout, the OBV has already marked a fresh high which is bullish. The RS Line, when compared against the broader NIFTY500 index, appears to be reversing its trajectory; it has penetrated the 50-Week MA.
The weekly MACD stays bullish while trading above its signal line; the MACD also traded above its center-line, which is incrementally positive. RSI has marked a fresh 14-period high which is bullish.
If the above technical setup resolves on the expected lines, the stock may travel towards its previous high in the 580-600 range over the coming weeks. Any close below 435 will mean a failure of the present technical setup.
Milan Vaishnav, CMT, MSTA
Consulting Technical Analyst
Disclosure pursuant to Clause 19 of SEBI (Research Analysts) Regulations 2014: Analyst, Family Members or his Associates holds no financial interest below 1% or higher than 1% and has not received any compensation from the Companies discussed.