UNITED BREWERIES (HOLDINGS) LTD (321.35)

United Breweries (Holdings) Ltd (UBHL), headed by Dr. Vijay Mallya, is the result of demerger of brewing business from the erstwhile United Breweries Ltd to a separate company, United Breweries Limited (UBL). The demerger left the company with investments in the group companies and real estate business. The company`s principle activities are to develop, market and export alcoholic beverages, leather footwear, pharmaceutical products, agrochemicals and processed foods. In addition, the group provides engineering colleges, air transportation, agrochemicals etc. through its subsidiaries.
Source: MyIRIS

Technical Picture:

Prices of this counter surpassed 23.6 retracement levels at 256 of the swing May 08 – March 09 during end of July with volumes. However the stock was unable to produce any follow thru in later weeks as they largely witnessed sideways action. This lateral move finally witnessed some aggressive buying action last week that propelled prices higher and have closed quite well. We have constructed Front shifted 1X1 Gann Lines taking its low of 60 touched in March 2009 as base, and note that prices are on the verge of staging a breakout. Momentum indicators indicate a healthy trend as RSI have moved in bullish territory. ADX is rising with prices further confirming our bullish view. Fresh buys can be considered here.  

Strategy:

We recommend buying this stock only above 322 with a stop below 310. Expect a target of 349 / 378.

PERFORMANCE OVERVIEW