Dear Readers,
Our pick for the day is JK Cements Ltd. It's India's one of the biggest cement manufacturing companies. The portfolio includes cement and cement products like grey cement, white cement and wall putty.
Our Mandatory checklists are
- Candlestick & Delivery Volume Analysis
- Future Open Interest
- Option Open Interest
- Technical Analysis using Ichimoku system
- Overall
- Stop Loss & Risk Reward Ratio
Let's look at the chart from the Tradingview below,
1. Candlestick & Delivery Volume Analysis:
The candlestick pattern on 8-Nov shows a big bullish momentum candle followed by a small retracement on 9-Nov with low volumes.
The percentage of delivery volume in terms of traded quantity is 23% per the NSE website.
Also, as per the charts, the volume is above the average volume for the past 10 days and volume is increasing which shows positive momentum in the delivery.
2. Future OI:
The increase in open interest is 5.4%
3. Option OI:
As per the Option open interest, the next resistance for the stock will be at Rs. 3,800. If it breaks and sustains above this level we can expect further momentum in the stock
4. Technical Analysis:
As per the Ichimoku indicator, the price above the cloud and all the components are also showing positive bias as follows
- Tenken Sen - Points upwards and closer to the price
- Kijun Sen - Points neutral and close to the price
- Senkou Span A - Points upwards and cloud is green
- Senkou Span B - Points upwards and cloud is green
- Chikou Span - Free in open space and don't have any immediate resistance on its way
RSI is at 64.39 and pointing upwards which shows bullish momentum.
5. Overall:
Overall the stock is showing more positive clues than negative.
6. SL & RR:
Stoploss for the stock can be at 3481 and Target can be at 4000. The RR will be 1:2.
Thanks to Tradingview, NSE India.