TV18BRDCST - Long Setup - Monthly Time Frame

Trade

Date of Identifying the Trade: 24 Feb 2017

Entry Date: Buy Stop Order is placed

Trade Entry
Market: BSE
Stock: TV18BRDCST (TV 18 Boadcast Ltd)
Long/Short: Long
Current Price: 39.90
Entry Price: 42.51
Time Frame: Monthly
Order Type: Buy Stop

Type of Trade:
Long Term

Reason For Trade:
Stock is in an uptrend
Price had hit 50 SMA and moved up
RSI is at 50. However RSI should break 50 level
Fundamentally strong
Promoter & Promoter Group holding is of 60.40% -Good Signs
Rakesh Jhunjhunwala and Jhunjhunwala Rekha Rakesh has holding of 1.75% and 1.45 % respectively
Public holding is: 39.60
Shareholding Pattern Public Shareholder:bseindia.com/corporates/shpPublicShareholder.aspx?scripcd=532800&qtrid=92.00&QtrName=December 2016
Bearish volume has decline and bullish volume is increased in the month of Feb 2017

Stop:
37.18

Target:
Target 1: 45.88
Target 2: 48.73

Pluses:
- Company is virtually debt free.
CMP/BV:1.87 (Greater than one)
DEC 2016 quaterly results were better than previous two quaters
Net profit is good
There will be sharp rise in price when the RSI is breaking the trend line drawn on RSI

Minuses:
Cash Flow is negative
- Though the company is reporting repeated profits, it is not paying out dividend
- Though the company is reporting regular profits, it is not paying out tax
- Company has a low return on equity of 2.18% for last 3 years.
- Contingent liabilities of Rs.3395.26 Cr
Risk Reward ratio is not great
Technically not a perfect setup but a decent setup
Stop loss is tight - Stop loss can be adjusted as per your requirement.
Brief Summary of emotions: nervous, confident, not confident, sleepy, stressed, tired...etc (Mention the reason for your emotions)
I am confident however I would be cautious if enter this trade and keep an eye on this trade

Stock added or sold during the current trade:
After target 2 is reached the trade can be reanalyzed.

Please do let me know if you want to analyze any stock.