Today we will discuss your evening tea ka sathi– Britannia!
CMP- Rs. 5625
Support 1- Rs. 5580, Support 2- Rs.5300
Resistance 1- Rs. 5910, Resistance 2- Rs.6175
Refer to the chart below. We can see that Britannia has trended upwards pretty consistently, and the corrections, which might have seemed scary in the past, seem trivial in hind-sight.
It is one of those rare buy & hold stocks that grandparents bought and forgot and made their future generations very wealthy!
However, despite the amazing track record, even a stock as mind blowing as Britannia has not been spared the market correction that has stunned the Indian Capital Market due to a plethora of reasons.
Britannia is currently 20% off from its highest price of Rs. 6934 and that is a lot of correction for a quality stock like Britannia which has grown at a 10 yr CAGR of 35%!
So what\’s next?
I looked at the hourly chart and this is what I found :
The hourly chart of Britannia is showing a mild positive divergence between the RSI and price. This indicates that the momentum of correction is going to slow down. It may resort of consolidation before it resumes the uptrend. I am not betting on a very deep correction as the daily chart continues to remain quite healthy and the correction started off without a major negative divergence like in the case of Maruti\’s chart, which is also a star performer like Britannia but is in the deep red zone and has breached its 52-week low and its correction started of with a sever RSI negative divergence.
I will look at the resistance level of 6175 because it presents the previous high, breaching which would be a continuation of the uptrend for me. But before that happens, I believe the stock will consolidate like it has done in the past following major corrections like this one.
The above chart shows the range shift activity of RSI, which has almost always given an early indication of the price behaviour. RSI has shifted it\’s range to correspond with the trend of price. Like in the uptrend, it maintained a range of 40-80 whereas in a downtrend/consolidation phase, it maintained a range of 20-60.
Such a tell tale behaviour of RSI is astounding even though it happens across stocks and indices, it still leaves me in awe of this wonderful indicator.
This phenomenon has been highlighted better in the chart below, wherein the uptrends in price have been shaded in green and the downtrend/consolidations have been shaded in red. We can clearly make out how the RSI accurately reflects the subdued momentum in price movements during cool periods and flares up when it starts trending again. RSI is rightly called a leading indicator.
As we see in the right most corner of the above chart, the RSI has recently shifted to the bear zone and this further strengthens my analysis that Britannia will continue to consolidate at this point. However, a move accompanied with heavy volumes below the support zone of 5380-5300 will be indication of continued correction, though I do not expect it to happen, but we have to keep an open mind and be ready for the unexpected.
If you would like to discuss any aspect of this analysis of Britannia, please feel free to reach out to me at email@example.com.
This is all for today! Do share this analysis with other stock market enthusiasts like you and me!
britania sharebritannia share pricebritannia sharebritania share value
britannia share price todaybritannia share price historybritannia share price bse
britannia share nsebritannia share newsbritannia share splitshare value of britannia
britannia market sharebritannia share dividendwhy britannia share falling todaybritannia share bonusbritannia share ratebritannia share targetbritannia share history
britannia share price forecastbritannia share price target tomorrow
britannia share price chartbritannia share face valuebritannia share bse
britannia share dividend historybritannia share moneycontrolbritannia shareholding pattern
britannia share price dividendbritannia share chartbritannia share split history
britannia share bonus historybritannia share price screenerbritannia share price in 2010
britannia share market todaybritannia share buy or sellbritannia share target price
britannia share rsibritannia share latest newsbritannia share price target 2025why is britannia share fallingbritannia share market pricebritannia share screener
britannia share market price todaywhy britannia share is going downbritannia share bonus record datebritannia share for long termbritannia share debenturebritannia share tomorrow
britannia share intrinsic valuebritannia share ticker tapebritannia share share price
britannia share price face valuebritannia share futurebritannia share ipobritannia share increasewhy britannia share is going down todaybritannia share dividend record date 2021
britannia share good or badbritannia share stockbritannia share trendlynebritannia share highbritannia share fundamental analysiswhy britannia shares are falling
britannia share registrarbritannia share dividend ex datebritannia share current news
britannia share latest news todaybritannia share intradaywhy britannia share double today
britannia industries share price nsebritannia share recommendation
britannia share downbritannia share price nse indiabritannia share fallingbritannia share deliverybritannia share indiabritannia share lot sizebritannia share trendbritannia share corporate actionbritannia share bonus date 2021britannia share call optionwhy britannia share price doubledbritannia share trading viewbritannia share news bonus
britannia share hikebritannia share chartinkbritannia share dividend datebritannia share dividend pricebritannia share glitchbritannia unilever share pricebritannia share bonus debenturesbritannia share investingbritannia share price in 1892britannia share isin
why britannia share increasedbritannia share return last 10 yearsbritannia share in 1982
why britannia share is fallingbritannia share growthbritannia share finology
britannia share bonus debentures 2021britannia share n3britannia share balance sheetbritannia shareholdersbritannia ind ltd sharebritannia share capitalbritania share value todaybritannia share roewhy britannia shares doubledbritannia share name
britannia share mergerbritannia share result datebritannia share price in 2019britannia share chart investingbritannia share in 1892britannia share candlestick chartbritannia share cagr
britannia share price last 10 yearsbritania shares todaybritannia share split 2020
britannia share bonus 2020britannia life share pricebritannia share technical analysis
britannia share price latest newsbritannia share market ratebritannia share stock split
britannia share transfer agentbritannia share resultbritannia share doublebritannia share listing datebritannia share graphbritannia share news in hindibritannia n3 share price
britannia share moving averagewhat happened to britannia share price
britannia share bonus 2021 record datebritannia share target 2021britannia share support and resistancebritannia share tickerbritannia share consolidationbritannia share rate today
britannia share split and bonus historywhy britannia share up todaybritannia share ipo pricebritannia share future pricebritannia share rsi chartwhy britannia share double
britannia share dividend payment date