Marico has support at Rs 50-52: Bhambwani

Excerpts from Markets Midday on CNBC-TV18 Watch the full show » RELATED NEWS Marico Sept '08 qtr PAT seen at Rs 49.5 cr: Motilal Oswal ALSO READ See previous views by Vijay Bhambwani See what other Experts & Brokerages are saying about Marico See messages about Marico Marico BSE | NSE 10/02/12 Are Mutual Funds betting on Marico?

Technical Analyst, Vijay Bhambwani is of the view that Marico has support at Rs 50-52.

Bhambwani told CNBC-TV18, "What is enthusiastic about Marico is the relative out performance of the broader market. This stock has refused to go down in tandem with the headline indices and Rs 50-52 band is the floor support, which would be utilized as a stoploss by short-term traders. So delivery based investors with a view of 4 to 6 quarters, I think lowest stoploss of Rs 45-46 is advocated."

He further added, "This stock is not suited for day traders or short-term swing traders but more for medium to long-term investors. Anytime you see the stock trading consistently above the Rs 62 level, which is the 52 week for a 200 day simple moving average one will see the stock attempting to sail all the way up to Rs 75 or Rs 77 levels. So it is an ideal delivery based investment with decent amount of returns thrown in."

Disclosure: Analyst doesn't hold the above stock.