Colgate Palmolive (Rs 407.25): Buy

We (B.L) a buy in Colgate Palmolive India from a short-term perspective. We note from the charts that the stock was on a medium-term downtrend from its January high of Rs 521 to February trough of Rs 362 levels. After finding support at around Rs 370 recently, the stock began to move up. On March 4, the stock conclusively broke through the medium-term down trendline by gaining Rs 19 or 5 per cent.

This surge had aided in penetrating the 200-day moving average, which was providing resistance to the stock in the past two weeks.

We also see that there is an increase in volume over the last two trading sessions. The daily momentum indicator took support at 40 levels and moved up towards the bullish zone. The daily moving average convergence divergence has crossed over one another and it is steadily rising towards the positive territory.

We are bullish on the stock in the short-term. We expect the stock’s current up move to continue further to our target price level of Rs 450 in the short-term. Investors with a short-term perspective can buy the stock while keeping the stop loss at Rs 375.

VIA: BUSINES LINE