Birla Corporation Limited Stock Forecast
Explanation to Bollinger's Bands
Bollinger Bands was created by John Bollinger in the early 1980s, its purpose is to define price action relative to the assets highs and lows. This technical indicator is used to identify buy and sell signals and has proven very well in doing so.
Bollinger Bands consist of a set of three curves drawn in relation to securities prices. The middle band is a measure of the intermediate-term trend, usually a simple moving average, that serves as the base for the upper and lower bands. The interval between the upper and lower bands and the middle band is determined by volatility, typically the standard deviation of the same data that were used for the average. StockInvest.us uses Bollingers suggested 20 day average.
Middle Bollinger Band = 20-period simple moving average
Upper Bollinger Band = Middle Bollinger Band + 2 * 20-period standard deviation
Lower Bollinger Band = Middle Bollinger Band - 2 * 20-period standard deviation
BandWidth defines the current width of the band.
%b defines the current position within the band.
BandWidth = (Upper Bollinger Band - Lower Bollinger Band) / Middle Bollinger Band
%b = (Last - Lower Bollinger Band) / (Upper Bollinger Band - Lower Bollinger Band)
Live Samples:
Bottlenecks in bandwidth indicate an upcoming change. Break up through the moving average line or continuous movements above the moving average line indicate a break up, and vice versa.
Source: http://www.bollingerbands.com
Birla Corporation Limited stock upgraded from Hold/Accumulate to Buy Candidate after Tuesday trading session.
(Updated on May 07, 2024)
The Birla Corporation Limited stock price gained 0.113% on the last trading day (Tuesday, 7th May 2024), rising from ₹1,544.40 to ₹1,546.15. During the last trading day the stock fluctuated 4.56% from a day low at ₹1,503.85 to a day high of ₹1,572.45. The price has risen in 6 of the last 10 days and is up by 5.1% over the past 2 weeks. Volume fell on the last day by -1 million shares and in total, 324 thousand shares were bought and sold for approximately ₹501.28 million. You should take into consideration that falling volume on higher prices causes divergence and may be an early warning about possible changes over the next couple of days.
The stock lies the upper part of a wide and falling trend in the short term, and this may normally pose a very good selling opportunity for the short-term trader as reaction back towards the lower part of the trend can be expected. A break up at the top trend line at ₹1,575.17 will firstly indicate a slower falling rate, but may be the first sign of a trend shift. Given the current short-term trend, the stock is expected to fall -13.52% during the next 3 months and, with a 90% probability hold a price between ₹1,100.10 and ₹1,362.26 at the end of this 3-month period. Do note, that if the stock price manages to stay at current levels or higher, our prediction target will start to change positively over the next few days as the conditions for the current predictions will be broken.
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BIRLACORPN.NS Signals & Forecast
There are mixed signals in the stock today. A sell signal was issued from a pivot top point on Friday, May 03, 2024, and so far it has fallen -0.88%. Further fall is indicated until a new bottom pivot has been found. Furthermore, there is currently a sell signal from the 3 month Moving Average Convergence Divergence (MACD). The Birla Corporation Limited stock holds buy signals from both short and long-term Moving Averages giving a positive forecast for the stock. Also, there is a general buy signal from the relation between the two signals where the short-term average is above the long-term average. On corrections down, there will be some support from the lines at ₹1,496.81 and ₹1,475.94. A breakdown below any of these levels will issue sell signals. Volume fell during the last trading day despite gaining prices. This causes a divergence between volume and price and it may be an early warning. The stock should be watched closely.
Support, Risk & Stop-loss for Birla Corporation Limited stock
Birla Corporation Limited finds support from accumulated volume at ₹1,544.40 and this level may hold a buying opportunity as an upwards reaction can be expected when the support is being tested.
This stock is usually traded at a good volume, and with minor daily changes, the risk is considered to be low. During the last day, the stock moved ₹68.60 (4.56%) between high and low. For the last week, the stock has had daily average volatility of 4.65%.
Our recommended stop-loss: ₹1,489.91 (-3.64%) (This stock has low daily movements and this gives low risk. There is a sell signal from a pivot top found 2 days ago.)
Trading Expectations (BIRLACORPN.NS) For The Upcoming Trading Day Of Wednesday 8th
For the upcoming trading day on Wednesday, 8th we expect Birla Corporation Limited to open at ₹1,540.82, and during the day (based on 14 day Average True Range), to move between ₹1,488.17 and ₹1,604.13, which gives a possible trading interval of +/-₹57.98 (+/-3.75%) up or down from last closing price. If Birla Corporation Limited takes out the full calculated possible swing range there will be an estimated 7.50% move between the lowest and the highest trading price during the day.
Since the stock is closer to the support from accumulated volume at ₹1,544.40 (0.11%) than the resistance at ₹1,559.90 (0.89%), our systems sees the trading risk/reward intra-day as attractive and believe profit can be made before the stock reaches first resistance..
Earnings coming up
Birla Corporation Limited will release earnings BMO on Tuesday, May 07, 2024. We will update the financials statements for Birla Corporation Limited, that can be found here as soon as the records are public. Our systems has calculated a possible swing of +/- 4.32% in the first trading day after earnings release.
Is Birla Corporation Limited stock A Buy?
Several short-term signals are positive, despite the stock being in a falling trend, we conclude that the current level may hold a buying opportunity as there is a fair chance for stock to perform well in the short-term. We have upgraded our analysis conclusion for this stock since the last evaluation from a Hold/Accumulate to a Buy candidate.
Current score: 1.216 Buy Candidate Upgraded
Predicted Opening Price for Birla Corporation Limited of Wednesday, May 8, 2024
| Fair opening price May 8, 2024 | Current price |
|---|---|
| ₹1,540.82 ( 0.345%) | ₹1,546.15 |
The predicted opening price is based on yesterday's movements between high, low, and closing price.
Trading levels for BIRLACORPN.NS
Fibonacci Support & Resistance Levels
| Level | Price | |||
|---|---|---|---|---|
| Resistance | R3 | 1,609.42 | 4.09 % | |
| R2 | 1,583.21 | 2.40 % | ||
| R1 | 1,567.02 | 1.35 % | ||
| Current price: | 1,546.15 | |||
| Support | S1 | 1,514.61 | -2.04 % | |
| S2 | 1,498.42 | -3.09 % | ||
| S3 | 1,472.22 | -4.78 % |
Accumulated Volume Support & Resistance Levels
| Level | Price | |||
|---|---|---|---|---|
| Resistance | R3 | 1,696.15 | 9.70 % | |
| R2 | 1,691.35 | 9.39 % | ||
| R1 | 1,559.90 | 0.89 % | ||
| Current price | 1,546.15 | |||
| Support | S1 | 1,544.40 | -0.113% | |
| S2 | 1,522.95 | -1.50% | ||
| S3 | 1,459.35 | -5.61% |
BIRLACORPN Dividend Payout History
| # | Ex-Date | Pay Date | Amount | Yield | |
|---|---|---|---|---|---|
| 1 | Sep 19, 2022 | Sep 19, 2022 | Sep 19, 2022 | ₹10.00 | 0.96% |
| 2 | Sep 21, 2021 | Sep 21, 2021 | Sep 21, 2021 | ₹10.00 | 0.764% |
| 3 | Aug 17, 2020 | Aug 17, 2020 | Aug 17, 2020 | ₹7.50 | 1.27% |
| 4 | Aug 14, 2020 | Aug 14, 2020 | Aug 14, 2020 | ₹7.50 | 1.24% |
| 5 | May 03, 2019 | Aug 05, 2019 | Aug 21, 2019 | ₹7.50 | 1.35% |
FAQ
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