Asian Paints:
Will crude oil 🛢️ prices continue to impact the profit margins of paint stocks❓
- In the last week, World's leading paint manufacturing company posted its quarterly results with a net profit of Rs.850 Cr.
- At the same time company has shown an increase in consolidated sales by 20.6 % and in revenue from operations by 18.6%.
- Irrespective of the higher raw material prices company maintained its double-digit growth with value growth of 16.3 % from the international operations.🌍
- Still, it will not be an easy task for the company in the coming few quarters considering the volatility in the crude oil which has slightly cooled down to $113 from its last month's high of $138
- Fears continue in the oil markets with European Union is planning for a new phase for a ban on imports from Russia.
- Hence it is highly possible to see the volatility in the oil markets in the coming week.🛢️
Technicals:📈
- Technically stock took support multiple times on the trendline in the daily timeframe.
- Relative Strength Index shows slight positive signs but still it is important to wait for a clear breakout.
- As shown in the charts, the stock is moving within the range, hence range breakout on either side will be crucial.
- In the last couple of sessions it has seen strong demand from its 200 EMA levels
Hence one can initiate a long trade:
Buy: Asian Paints only above 3202 (Positionally)
Stop Loss: 3155
Target:3317
Disclaimer: The information mentioned above is only for educational purposes. Kindly contact your financial advisor before trading/investing 💰
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