Mundra Port and Special Economic Zone ltd.

Symbol: MUNDRAPORT

Suggestion: Buy

Open             401.30
High              451.60
Low               401.30
Last Price    438.60

Fig. 1: Price movement - Mundra Port

The current movement of the stock price is shown in fig. 1. Further, there are 3 lines drawn that are helpful in figuring out the current trend of the stock. These 3 lines are the SMAs as mentioned in the figure. As the SMA(4) line is above all other lines, the trend is Bullish. Therefore, the stock price is expected to increase in the coming sessions. This is further supported by other tools, as shown below.

Fig. 2: ADX - Mundra Port

Before having a look out at other tools, it is better to first look at the current state of the stock i.e. it is whether trending or trading. This is done by the ADX graph. The current value of ADX is 44.12, therefore indicating that the stock is in the trending phase and thus trend followers to be used for further analysis.

Fig. 3: Mundra Port

Bollinger band is one of the general indicators which gives a faint idea of how the stock is moving. As shown in fig. 3, the price is moving close to the upper band (above the SMA(20) base line). It has been like that for almost 2 months. This adds some more probability to the presence of Bulls.

Fig. 4: MACD Histogram - Mundra Port

This graph helps in identifying the strength of the current trend (Bullish). As can be seen, the trend is gaining momentum therefore more upward movement is expected to come in the coming sessions.

Thus, it is figured out that the stock of Mundra Port is in the Bullish phase as of now and thus it is advised to buy the stock and wait for further signals. Obviously keeping a Stop loss at Rs. 435 will help if the trend changes suddenly.

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