Will Century Enka stock take off and rally? That's the big question many traders are asking. The question has become more relevant especially after the quarterly earnings:
Net profit of Century Enka rose 57.39% to Rs 13.63 crore in the quarter ended June 2015 as against Rs 8.66 crore during the previous quarter ended June 2014. Sales declined 0.55% to Rs 301.76 crore in the quarter ended June 2015 as against Rs 303.43 crore during the previous quarter ended June 2014
Century Enka Stock price reaction to earnings
The stock spiked on earnings day on Monday. But post that spike - stock has come off and not shown any momentum and follow through
The Big Picture
Every time stock rallies to 200-205, the stock sells off and that's what has been happening for over a year now. Century Enka stock needs to clear 200-205 for technical momentum to kick in. Till that time, a tug of war between Bulls and Bears expected to continue
Tracking the stock
Post earnings and one day spike - the stock should be on watch list. Keep an eye and if the stock does make a momentum move above 200-205 - then one can expect momentum to kick in. But right now, the stock is facing a technical problem i.e. overhead supply at 200.
I am sharing this post so that if stock does make a momentum move, you can watch the stock price action and learn from the experience on how one should approach certain price action.
Disclaimer – The state of the market notes is Deepak’s perspective on the market. The column is purely for educational purpose. Nothing contained herein is a solicitation to trade or a recommendation of a specific trade. By reading this publication you agree to make no trade relying in whole or in part on the comments of the writers