ICICIdirect.com is bullish on Tide Water Oil and has recommended buy rating on the stock with a target of Rs 16380 in its September 5, 2014 research report.
ICICIdirect.com`s research report on Tide Water Oil
“The share price of Tide Water Oil embarked upon its bull run on the bourses since bottoming out in December 2011 (Rs 5378). Since then, it has yielded strong gains for investors. Earlier, after a four fold rally during 2008-10 (Rs2199-10192) the stock went into a secondary corrective phase during which it consolidated in the range of Rs 7800-5500 digesting the gains and gathering strength for the next big move. The stock price gathered fresh momentum in late 2013 after a two-year long consolidation and signalled the resumption of a primary up trend. The underlying strength in the trend can be gauged from the fact that the stock has remained unfazed by the market wide fluctuations in the last two and a half years and has held its bullish structure. The prominent feature of this bull phase has been a shallow nature of secondary corrections and stronger price rallies, which define a positive price structure. Recently, after rallying from Rs 7715 to its life-time highs of Rs 12673 during July 2014, the stock spent the entire August 2014 under consolidation range to work off the short-term overbought conditions. During the current week, the stock has given a fresh breakout above its previous high indicating resumption of primary up trend and provides a fresh entry opportunity to ride the next up leg.”
“The entire month long consolidation during August 2014 occurred near the 38.2% retracement (Rs 10780) of the preceding up leg (Rs 7718-12673). Lack of selling pressure and consistent demand at higher levels highlighted the strong appetite among investors to own the stock. The rising eight-week moving average (currently at Rs 11760) has remained a key support for the share price since then in case of short-term corrective declines. Among oscillators, the monthly MACD is seen in a rising trend forming higher high and diverging from its nine periods average signalling strong positive momentum in the stock. Buy Tide Water Oil in the range of Rs 13300–12800 for a target price of Rs 16380.00 with a stop loss below Rs 11550.00 on a closing basis,” says ICICIdirect.com research report.
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