Shabbir Kayyumi
The moving averages can be utilised to determine trends. Rising moving average implies a rising trend; whereas falling moving average trend indicates falling trend.
Developed by Australian trader Daryl Guppy, the Guppy Multiple Moving Average (GMMA) indicator provides an interesting method to analyse a market’s behavior by using 12 different exponential moving averages (EMAs).
What is a ‘Guppy Multiple Moving Average (GMMA)’?
Figure.1. GMMA and Buy signal on Sudarshan Chemical
Buy Signal:-
Whenever price candle will be near previous swing high which is near Rs 425 levels.
Stop Loss
Entire bullish view negates on breaching of the last long-term EMA (60 EMA) of GMMA and one should exit from long position. In the case of SUDARSHAN, it is placed around Rs 335 levels.
Conclusion
We recommend buying Sudarshan Chemical Industries Limited (SUDARSCHEM) around Rs 370 levels with a stop loss of Rs 335 on closing basis for higher targets of Rs 425 as indicated in above chart.
(The author is Head - Technical & Derivative Research, Narnolia Financial Advisors Ltd.)
Disclosure: Narnolia Financial Advisors/Analyst (s) does/do not have any holding in the stocks discussed but these stocks may have been recommended to clients in the past. Clients of Narnolia Financial Advisors Ltd. may be holding aforesaid stocks.
The stocks recommended are based on our analysis which is based on information obtained from public sources and sources believed to be reliable, but no independent verification has been made nor is its accuracy or completeness guaranteed. The views expressed in this research report accurately reflect the personal views of the analyst(s) about the subject securities or issues, and no part of the compensation of the research analyst(s) was, is, or will be directly or indirectly related to the specific recommendations and views expressed by research analyst(s) in this report.
Disclaimer: The views and investment tips expressed by investment expert on moneycontrol.com are his own and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Discover the latest business news, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!