skip to Main Content

/ (+91) 8779800688 / 8779639189 / 9967971875 / 9920235022 support@chartadvise.com
Call or Click on any Phone number to start Whatsapp Chat

Is MRF A Good Buy Post Healthy Correction??

Is MRF a good buy post healthy correction??

Tyre major MRF  posted 14.91 per cent decline in its standalone net profit at Rs 293.83 crore for the fourth quarter of 2018-19 fiscal. The company had posted a net profit of Rs 345.32 crore in the year-ago period. Revenue from operations, however, rose to Rs 4,073.45 crore during the fourth quarter as compared with Rs 3,835.50 crore in the same period of 2017-18, MRF said in a regulatory filing.
For the 2018-19 fiscal, the company reported a net profit of Rs 1,096.87 crore, up marginally from Rs 1,092.28 crore in 2017-18. Revenue from operations rose to Rs 15,837 crore in 2018-19 fiscal as compared with Rs 15,181.05 crore in 2017-18.

The company’s board recommended a final dividend of Rs 54 per share, which along with two interim dividends of Rs 3 each already paid, works out to Rs 60 per share for the year ended March, 31 2019.

Technical View

MRF has corrected some 35 percent odd from the highs. The correction has brought the stock to an important support zone of 50600-52180 levels. The   fall has halted at the confluence zone. This is a high probability reversal zone and the Fibonacci confluence zone is coming from two different pivot points. At the confluence zone RSI is taking support at the 40 levels which is the bull support zone of the RSI. Hence RSI is confirming the support on the price. The entire fall has come with lower volumes and that’s again indication of strength.  The fall has halted at the 38.2% of the major swing which is again an indication of strength. A stock that doesn’t correct more than 38.2% is an indication of tremendous strength. Therefore the trend is intact and is strong. The other way to look at trend is the moving averages. The shorter moving averages crossed the longer moving average in 2010 and the same has been intact till date. Therefore the stock has been in an uptrend since 2010 according to the moving averages as well. Therefore this stock is a good buy at current levels of 54,000 with a minimum target of 60000 which is 11 percent from the current levels. The stop for the same should be placed below the lower confluence zone of 50800 levels.

Leave a Reply

Your email address will not be published. Required fields are marked *

SIGN UP - UNLOCK FREE CONTENT