COALINDIA trade ideas
COAL INDIAAs per the Japanese study of Ichimoku Multi Time Frame Analysis, Coal India has activated a C Clamp in daily time frame. As per the study, it could rally till 155 where the Kijun/Base line is currently, with minor resistance at 150 as long as it stays above 144 (fractal low) over the next 10 calendar days till it remains valid.
In terms of R:R and time anticipation the set up looks decent.
Do Your Own Research before initiating and follow levels (both in terms of reward and risk) always.
Enter at BREAKOUT Clearly saw a downtrend, Made a Trendline If it gives a Breakout it would be a good trade 💰
TARGET 1 :160 RS
TARGET 2: 165 Rs
Taking a STOP LOSS @ 143.50 AT SUPPORT ( Going safe )
RISK : REWARD RATIO = 1:1.7 ( looks good )
CAN GO SHORT IF YOU SEE ITS GOING BELOW THE BLUE LINE ( NOT RECOMMENDED)
COAL INDIA - 4H - 22.06.2021as suggested, the price reacted good from the demand zone.
currently at resistance, but overall should move up if price closes above 148.80 this week (highly likely).
daily close above 148.80 would be good sign too.
hidden bullish divergence seems to be playing out well.
if some how price falls, look for reaction in the red zone.
coal India poised to give a minimum return of 24% in next 2 year# Those buying Coal India around 146 level could generate Rs 35 in dividend income in next 2 years (including the recent announced 3.5/- dividend). That comes to roughly 24% return on investment.
# plus there is potential for upside from appreciation in stock price due to following reasons:
1. Production Increase due to front loading of capex
2. wage revision and consequent pass on of costs to buyers in next 6 months
3. higher auction sales and realization
# Valuation wise the company is trading at a shiller pe of just 6.5 times which suggest that the company has earned its market cap in last 6.5 years itslef on average 10 year profit of 13843 crores. So if the stock is held for around 7 years, it is likely to earn it 90000 crore market cap again plus the future value will still be there in the stock price.
# Its probably ESG theme which is keeping global investors away from this stock. But Coal being an essential commodity in 70% of Indian power generation, it is unlikley to be replaced any soon.
# With Banks FDs generating just 6% return, the earning yield on Coal India is a very attractive proposition.