Dabur: Multibagger giving 29% returns in just over 3 months!

Dabur has been another major outperformer from our Multibagger research and it has given nearly 29% returns in just over 3 months. The study used to identify such stock is Time cycles combined with Elliott wave analysis.

Identifying the stock that has capability to give promising returns that too when Midcap index is way below their life time high levels is not an easy task. We use various methods to stay objective and identify such jewels that has huge potential not based on fundamentals but a strong technical structure. Dabur was one such stock which we published on 18th April in our “Multibagger research report”. The stock was trading near the zone of 345 – 350.

See yourself below chart of Dabur which helped us to be bullish at 345 – 350 levels and the stock touched intraday high of nearly 444.85 in today’s session. That is a whopping 28% – 29% return in just over 3 months.

Dabur weekly chart: (Anticipated on 18th April 2018)

Dabur weekly chart: Happened

The above research about Dabur was published on 18th April 2018 in our “The Financial Waves Multibagger update”.

(Here is a part of research taken from the Multibagger research report.)

Multibagger stock recommendation: Dabur

Buy Price – 340 – 350

Time Horizon – 1 – 2 years

Investment – 5% of capital

Target price – ………. levels

Stoploss – 250

Elliott Wave analysis: (Anticipated on 18th April 2018)

Dabur India Ltd is into FMCG sector with Market Capitalization of over Rs 61,900 Crore. The major reason to pick up this stock is that it has been into a long bull trend since 2003. The overall structure of this stock is explained below.

Elliott wave perspective: As shown in weekly chart of Dabur, from 2012 to mid-2016 prices moved higher from the levels of 92 to 316 levels in the form of primary wave …… which is more than 240% increase? After the strong Bull Run this stock was contained within a consolidation and prices drifted lower from the high of 316 levels to 265 levels in the form of wave ……..

108 weeks cycle, channeling technique: and much detailed explanation given in the Multibagger research report.

In a nutshell, various indicators like Time cycle, Exponential Moving Average, Elliott wave counts and channel technique suggests that we can expect this stock to rally towards ….. levels over next 1 to 2 years with 250 as very important support.

Happened: As mentioned prices exhibited a sharp move on upside and has performed amazingly well touching intraday high of 444.85 providing nearly 29% return in short span of time. This clearly shows even in this market when only a few midcap stocks are participating we have been able to identify a stock having potential to give amazing returns.

Create your portfolio of stocks that have potential to give 80% to 100% returns over 1 to 2 years. However, one has to take a systematic and disciplined approach and book partial profit for capital protection. Subscribe now to “Multibagger research report “ here

Dabur – How to use Time cycles for capturing a big swing?

Time cycles can be a very powerful method in identifying the major turning juncture. But it should not be applied alone. By combining it with techniques like Elliott wave you can get price projections more accurately.

Now look at the below chart of Dabur on which we have applied Hurst’s Time cycles. So what do you think should be the target?

Dabur Weekly Chart:

Wave analysis:

Dabur India Ltd is into FMCG sector with Market Capitalisation of over Rs 61,900 Crore. The major reason to pick up this stock is that it has been into a long bull trend since 2003. The overall structure of this stock is explained below.

Elliott wave perspective, Channeling technique are explained with targets in the actual research report.

??? weeks cycle: It is now time to look at the bigger cycle in order to understand the probable reversal areas from medium term perspective and we can observe that exactly at the cycle day important bottoms are formed. Following which prices have shown sharp rise and touched all-time high. As per 108 weeks cycle, stock has made a low at 316-levels which also happens to be the support level which was resistance earlier as shown in the figure. This shows that going forward, prices have high probability ………..

Channeling technique: Since 2012, prices are intact in upward moving blue channel and currently prices are taking support at the lower trendline at around ………. levels.

Want to create your portfolio of stocks that have high potential to give multi-fold returns? However, there are always risks associated and so one should have a very well defined stoploss and target before initiating any positions. So, what are those levels?

Get access to “The Multibagger stocks research” and see how slowly and steadily you can create your own portfolio of stocks that have potential to outperform the overall market and has high probability to give multifold return. Also understand there is going to be risk involved and one has to have a systematic approach. Know more here

How to trade stocks based on Technical analysis, Risk reward, Channels, Fibonacci, Elliott wave?

Trading stocks or for that matter any asset class requires a proper management and mixture of various aspects. Many traders think it is only research that will result into profitable outcome. But trust me it takes a lot of other aspects like Emotions, Temperament, Risk management, Money management, Technical analysis, etc.

Now look at the below chart that shows various techniques we use in order to give “Stock Tip” or Equity  calls to our clients.

Dabur India 60 mins chart:

Elliott wave and technical analysis: The above chart shows application of various techniques combined together. The most important aspect is to see:

1. If prices are forming higher highs and higher lows that will be first thing to confirm that the short term trend is positive. Break above the high of 277 (spot) and 278 (Fut) confirmed this.

2. Second thing to observe if there is a recognizable pattern – a rectangle pattern having resistance at 275 was decisively taken out giving a target zone of 288 based on the width of the pattern projected upwards.

3. Elliott wave structure: showing that wave C should come on upside post completion of wave B which was confirmed on faster retracement of last falling segment within wave B

4. Fibonacci projection of wave C = wave A was also again near the zone of 290.

5. Risk Reward: Prudent stoploss and risk reward ratio is very important. The Gap area near 271 – 272 provided ideal stop for the target of 278.

Based on the above observation and analysis we generated a Buy call on Dabur which was sent across to our clients via Yahoo messenger / SMS on 29^th April –

“DABUR INDIA FUT BUY AT CMP 278.60 SL 271.50 TGT 288”

Later, once the stock moved in our favor preserving capital is utmost important:

“DABUR INDIA FUT BUY CALL GIVEN ON FRIDAY BOOK PART TP AT 282 AND TRAIL STOP TO COST”

Target achieved: “DABUR INDIA FUT BUY CALL GIVEN ON FRIDAY BOOK PART TP AT 282 AND TRAIL STOP TO COST”

The above research highlights prudent and objective methods we follow to generate trading calls on Equity, Commodity and Currency markets. But not always all calls will result into a profitable outcome. Nevertheless, if the probability of success if 75% to 80% with favorable risk reward ratio the net outcome over the long run is still going to be positive.

Subscribe NOW: Trading Advisory by visiting – PricingPage. You will also get FREE access to the daily research report for that asset – Equity, Commodity, Currency. Trade systematically!

Stock ideas for today by Ashish Kyal on Zee Business!

Below are the 5 stocks strategies / ideas given by me on Zee Business before the equity markets opened

1. Dabur 

Dabur has fallen all the way from 180 to 155 levels within 15 days. Currently prices are trading below all the important moving average.  This is showing weakness in this stock.  One can sellDabur on rallies to 161 with the stop loss of 165 and the target of 150.

2. Bajaj Auto

Yesterday we have observed sell off in Nifty in last 15 minutes and Bajaj Auto was one of the major underperformer. It has given classical H&S breakout in recent trading sessions and we are expecting that stock has more potential left on downside. One can sell Bajaj Auto on rallies to 1985 with the stop loss of 2020 and the target of 1930.

3. Ambuja Cement

Ambuja Cement is one of the stocks which have underperformed market in recent upside rally. Prices have reversed twice after kissing 20 SMA. One can sell Ambuja on rallies to 179 with the stop loss of 183 and the target of 170.

4. NTPC

We have observed consolidation breakout on upside in NTPC. In recent trading prices have taken support near 150 levels and bounced back. One can buy NTPC on dips to 151 with the stop loss of 148 and the target of 160.

5. Auro Pharma

Auro Pharma has shown very strong move from 210 levels and currently it is outperforming the market. Also pharma sector is a better pick during unclear market scenario. One can buy this stock at current levels with 265 as stoploss and target of 290.

The above stocks were mentioned in morning on Zee Business and our views might have changed based on market movement. We also publish daily Equity Research Report which covers Nifty plus 3 stocks along with detailed chart and explanation. By subscribing to intraday advisory you can get this research absolutely FREE. To get a copy of the same write to us at  helpdesk@wavesstrategy.com or call us on +91 9920422202 /+91 22 8831358