scorpiomanoj

SFL - Price & Vol contraction observed

Long
NSE:SFL   SHEELA FOAM LTD
#SFL
CMP 1686
Long suggested above 1715
Stop 1590
Target Open

Logic
Weekly chart
Stock witnessed a 31% correction from 52 wk high with relatively low volumes after which stock has recovered with huge volumes.
Stock also has broken out of a rectangular pattern with huge volumes post which has been consolidating with very tight contraction in price as well as volume, which is a very good sign of a possible breakout.
Hence long suggested at the high of the current contraction base which is 1715.

Fundamental parameters
D/E nil
ROE 25%
Sales and Profit growth has been reasonably in a general uptrend in the last 3-4 quarters.
Promoter holding 85%.
Low float stock with free float 1156 cr out of the total market cap of 8261 crores.



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