INFO EDGE (NAUKRI) Trend Analysis

One of the high risk stocks to go for a positional trade as per its fundamentals.

A clear Head & Shoulder pattern formed and recent price action shows strong bearish divergence with RSI for a bearish continuation.

Price has retested the neckline and is heading towards a downside target of around 2350.

It lies in confluence with golden FIB and long term trendline support.

Good to accumulate around 2200-2500 level for a possible upside of around 4300-4500 level (83% ROI)

Stop Loss around 2000 (Mandatory)

Few fundamental aspects:

Earnings include other income of 13,810 crores, whereas operating profit is just 439 crores for FY 2021-22.

This other income has made the PE look cheaper around 18, keeping aside the other income can make PE above 100.

Intangible assets valuation increased to 902 crores from 75 crores (whopping 12 times in a year) sounds exorbitant.

Being a market leader, there is no doubt on its business aspects but I am not going to invest in this until the fundamentals look attractive, its highly overvalued as per the facts I have mentioned.

Other income is income derived from activities unrelated to the main focus of a business.
Examples are:
Income on bank deposits,
Interest on loan to customer or 3rd party,
Rental income from investment property,
Dividend on equity investments,
Profit on disposal of property, plant & equipment and
Scrap sales

Kindly do your own due diligence before taking any action.

Do follow me to get notified whenever I will be posting updates on some of my TAs in near future if I observe any changes to my current ideas.


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