#RADICO Magic Moment (pun intended) for this counter in terms of relative strength. Both the long term and short term relative strength are getting stronger with respect to the broader market.
On the weekly chart, the stock continues to be in a V Shape recovery indicating the continuation of long term uptrend. See attached.
On daily chart, relative strength is getting stronger along with the confirmed pullback from the previous resistance zone. See attached.
For long term investors, it can be accumulated with the stop loss below 710 while for the short term positional, the stop loss can be below 900.
Purely for investors: This company is still facing the headwinds in terms of its operating margins due to high freight and raw material cost. This risk is bundled with potential regulation issues as far as the liquor sales are concerned in India. They are currently in the capex phase in Sitapur which is expected to be be operational from Q3FY23 and will mitigate some of the raw material issues and will add to the manufacturing of IMFL (Indian Made Foreign Liquor) segment which in-turn should increase their operating profit margins.
Disclaimer: I am invested in this stock from lower levels.
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