Tactical (Short-Mid Term): Wait for a confirmed breakout above ₹134–135 on strong volume before initiating new positions. With high RSI and Stochastic, expect potential short-term pullbacks.
Strategic (Long Term): If the fundamental growth and profitability remain intact, Cupid Ltd. remains a compelling long-term hold. Consider accumulating on dips or after consolidation phases for better risk-adjusted returns.
Technical Analysis (Chart Insights)
Cup and Handle Breakout: Cupid Ltd.'s weekly chart reveals a classic "cup and handle" pattern, typically signaling bullish continuation if broken with strong volume.
Resistance Level: The price is testing a major resistance around ₹134–135. A successful close above this level with heavy volume may open further upside.
Moving Averages: The stock is trading well above key EMAs (21, 50, 100, 200), indicating a strong uptrend.
Volume Spike: Noticeable increase in volume supports the recent upward movement, suggesting institutional interest.
Momentum Indicators:
RSI: Around 75, in overbought territory, which can lead to short-term pullbacks but also indicates strong momentum.
MACD: Shows bullish crossover and positive momentum.
Stochastic: Also overbought (>90), further reinforcing short-term caution.
ADX: Above 35, confirming a strong trend.
Fundamental Analysis Overview
(You requested fundamentals alongside technicals. Here’s a concise evaluation based on typically available metrics for Cupid Ltd:)
Business: Major Indian player in condom and lubricant manufacturing, catering to both domestic and export markets.
Profitability: Historically strong EBITDA margins, healthy net profits, and consistent dividend payouts.
Growth: Steady revenue and profit growth over recent years, supported by both government contracts and retail expansion.
Financial Health:
Minimal to no long-term debt; strong cash reserves.
Good return ratios (ROE, ROCE), suggesting efficient capital usage.
Valuation: As of recent data, the stock trades at a premium to sector peers on PE and PB, justified only if growth continues to accelerate.
Strengths
Market Leadership: Niche player in a high-barrier industry.
Exports: Significant export revenue implies diversification beyond India.
Financial Stability: Debt-free, good cash flows, and payouts to shareholders.
Risks
High RSI/Stochastic: Stock is technically overbought, susceptible to corrections.
Sectoral Constraints: Dependent on public sector/government orders, making earnings lumpy.
Valuation Premium: Sustained high valuation requires continuous growth execution.
Strategic (Long Term): If the fundamental growth and profitability remain intact, Cupid Ltd. remains a compelling long-term hold. Consider accumulating on dips or after consolidation phases for better risk-adjusted returns.
Technical Analysis (Chart Insights)
Cup and Handle Breakout: Cupid Ltd.'s weekly chart reveals a classic "cup and handle" pattern, typically signaling bullish continuation if broken with strong volume.
Resistance Level: The price is testing a major resistance around ₹134–135. A successful close above this level with heavy volume may open further upside.
Moving Averages: The stock is trading well above key EMAs (21, 50, 100, 200), indicating a strong uptrend.
Volume Spike: Noticeable increase in volume supports the recent upward movement, suggesting institutional interest.
Momentum Indicators:
RSI: Around 75, in overbought territory, which can lead to short-term pullbacks but also indicates strong momentum.
MACD: Shows bullish crossover and positive momentum.
Stochastic: Also overbought (>90), further reinforcing short-term caution.
ADX: Above 35, confirming a strong trend.
Fundamental Analysis Overview
(You requested fundamentals alongside technicals. Here’s a concise evaluation based on typically available metrics for Cupid Ltd:)
Business: Major Indian player in condom and lubricant manufacturing, catering to both domestic and export markets.
Profitability: Historically strong EBITDA margins, healthy net profits, and consistent dividend payouts.
Growth: Steady revenue and profit growth over recent years, supported by both government contracts and retail expansion.
Financial Health:
Minimal to no long-term debt; strong cash reserves.
Good return ratios (ROE, ROCE), suggesting efficient capital usage.
Valuation: As of recent data, the stock trades at a premium to sector peers on PE and PB, justified only if growth continues to accelerate.
Strengths
Market Leadership: Niche player in a high-barrier industry.
Exports: Significant export revenue implies diversification beyond India.
Financial Stability: Debt-free, good cash flows, and payouts to shareholders.
Risks
High RSI/Stochastic: Stock is technically overbought, susceptible to corrections.
Sectoral Constraints: Dependent on public sector/government orders, making earnings lumpy.
Valuation Premium: Sustained high valuation requires continuous growth execution.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.