At a time, when every stock is succumbing to market correction - here's one stock that seems to be acting against all odds and marching higher.
The stock name is SKS Micro Finance
As a chart follower - I don't look at why but since many of my readers are interested in knowing why. Here's why it looks like market seems excited:
The company in October got a Rs. 100 crores loan from the government's MUDRA Bank at 10 pct interest. The company said the Mudra loan, which comes at 10% annual interest rate, is cheaper than loans from financial institutions. This would help it bring down the cost of interest-bearing liabilities
Technical Reading of the chart
As you can see in the chart above: SKS Microfinance stock has moved above the resistance of 100 dma. The rally is also changing the slope of all moving averages to up, which makes the stock buy on dips. No stock moves in one direction forever. It will pullback and so one should keep it on their watchlist to add it when they pullback to attractive levels.
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