Confidence Petroleum India Ltd : Stock Analysis
đź’ˇCompany Overview:
Confidence Petroleum India Ltd is a leading manufacturer of LPG cylinders and a prominent supplier of auto LPG in India. With an extensive network of bottling plants and Auto LPG dispensing stations across the country, the company also serves industrial and commercial clients through packed LPG cylinders.
đź’ˇFinancial Performance (2017-2023):
Over the years, the company's net profit has demonstrated a steady growth trajectory. This consistent increase is attributed to rising sales, indicative of a healthy operation. A gradual profit rise, rather than sudden spikes, signifies the company's stability and sustained market presence.
đź’ˇInstitutional Interest:
Recent stake additions by Domestic Institutional Investors (DIIs) highlight growing market confidence in the company. Institutional investments often indicate a positive outlook and can influence market sentiment positively.
đź’ˇTechnical Analysis:
✔️Double Bottom Pattern:
The stock displayed a double bottom pattern, indicating a potential trend reversal. The first bottom at 45-48 initiated buying interest. The second bottom at 56-59, coupled with increased buying activity, partially confirmed the pattern.
1st Bottom (45-48):
The first bottom at 45-48 initiated buying interest, marking the start of a potential uptrend.
2nd Bottom:
Efforts to break out at 81-83 faced strong supply, causing price falls.Then the Buyers from the first bottom re-entered the market, driving the price up.
Strong Upward Movement - Double Bottom Confirmation:
A strong upward movement confirmed the double bottom pattern. The breakout above the neckline indicated a potential sustained uptrend.
✔️Volume Analysis:
🔹Volume A: Increased volume during upward movements highlighted heightened participant interest.
🔹Volume B: Lack of significant volume indicated market indecision or limited trading interest.
🔹Volume C: Comparing volume with corresponding price range provided insights into market activity.
🔹Volume D: Volume decreased during the fall from 96, indicating reduced selling pressure.
đź’ˇAssumptions and Market Outlook:
Considering the stable financial growth, institutional interest, and technical patterns, the stock appears poised for an upward move. The formation of a doji candle in the weekly timeframe, coupled with decreasing volume alongside price, supports the assumption of weakening selling pressure and potential for an upward trend.
🔹Day frame
The stock retested the breakout area (81-84) with low volume, suggesting potential stability at higher levels.
If you are looking for an entry try at current level cmp 84
targt 90-100-130+
Study before making an investment decision.
Thank you
Ankith Shaju
Confidence Petroleum India Ltd is a leading manufacturer of LPG cylinders and a prominent supplier of auto LPG in India. With an extensive network of bottling plants and Auto LPG dispensing stations across the country, the company also serves industrial and commercial clients through packed LPG cylinders.
đź’ˇFinancial Performance (2017-2023):
Over the years, the company's net profit has demonstrated a steady growth trajectory. This consistent increase is attributed to rising sales, indicative of a healthy operation. A gradual profit rise, rather than sudden spikes, signifies the company's stability and sustained market presence.
đź’ˇInstitutional Interest:
Recent stake additions by Domestic Institutional Investors (DIIs) highlight growing market confidence in the company. Institutional investments often indicate a positive outlook and can influence market sentiment positively.
đź’ˇTechnical Analysis:
✔️Double Bottom Pattern:
The stock displayed a double bottom pattern, indicating a potential trend reversal. The first bottom at 45-48 initiated buying interest. The second bottom at 56-59, coupled with increased buying activity, partially confirmed the pattern.
1st Bottom (45-48):
The first bottom at 45-48 initiated buying interest, marking the start of a potential uptrend.
2nd Bottom:
Efforts to break out at 81-83 faced strong supply, causing price falls.Then the Buyers from the first bottom re-entered the market, driving the price up.
Strong Upward Movement - Double Bottom Confirmation:
A strong upward movement confirmed the double bottom pattern. The breakout above the neckline indicated a potential sustained uptrend.
✔️Volume Analysis:
🔹Volume A: Increased volume during upward movements highlighted heightened participant interest.
🔹Volume B: Lack of significant volume indicated market indecision or limited trading interest.
🔹Volume C: Comparing volume with corresponding price range provided insights into market activity.
🔹Volume D: Volume decreased during the fall from 96, indicating reduced selling pressure.
đź’ˇAssumptions and Market Outlook:
Considering the stable financial growth, institutional interest, and technical patterns, the stock appears poised for an upward move. The formation of a doji candle in the weekly timeframe, coupled with decreasing volume alongside price, supports the assumption of weakening selling pressure and potential for an upward trend.
🔹Day frame
The stock retested the breakout area (81-84) with low volume, suggesting potential stability at higher levels.
If you are looking for an entry try at current level cmp 84
targt 90-100-130+
Study before making an investment decision.
Thank you
Ankith Shaju
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