New Diamond for Portfolio

Dow Principal says the Market has three trends Primary, Secondary, and Minor Trends.

Every trend has some kind of structure that is Higher High and Higher Low & Lower High and Lower Low.

If the price is forming higher highs and higher low that is considered a Bull trend in the price and if the price is forming lower highs and lower lows that are considered a bear trend.

If we look at the Page Industry monthly chart price is forming Higher High and Higher Lows.

Mean the stock has been in Bull Trend for the long term.

Recently it made a new swing low last month of around 35575 corrected almost 35% from its high after forming that low price showed a sharp upside move.

Before a sharp move, the price halted near the support for a few weeks after that it showed a good upside move.

This halt before the move indicates that the bears who have been controlling the stock for 7 months are now getting exhausted near this zone, the small candles near the support are the indication of the weakening of bears.

Just after this halt, the sharp upside move indicates that the bulls are now taking control of the market. In this move, we have seen some good volumes that confirm the interest of the Bulls.

The level from where the price has taken support 35575 is exactly a 50% retracement support of Fibonacci retracement from the swing low of 2020 (16254) to the swing high of 2022 *(54349)*.

As per this retracement and Higher High formation, the extension comes to around 74000.

Fundamentals Analysis

The fundamentals of the company are very attractive.

1. The company is Debt Free.

2. Last year the ROE and ROCE have got increased and currently standing at 54% and 75% which is a very strong return on Investment.

3. The company has been maintaining good sales and profit growth for the last 5 years which is standing at 13% and 15 % (5yr CAGR).

4. Last year the sales grew by 37% and profit grew by 57%.

5. The company has been maintaining a profit margin of around 13% for the last 5 years.

6. DII has increased the holding by 2%.

7. The stock is trading at the 4-year low PE with such good fundamentals.

SBI Focused Equity Fund and UTI Flexi Cap Fund have increased the holding.