Trading at DSE , Script : Navana Cng

Asad ul islam
Equity & Investment analyst
Amarstock.com

Navana CNG is an engineering sector script trading currently at 71.2 tk at Dhaka stock exchange , It was at its yearly low of  53.8 tk around end of march 2018. Than the script saw a meteoric rise to 78 tk around first week of may. Than the script entered into correction and bounced back from its EMA 200 at 66 tk .

Currently we observed that when ever its volume is trading above average volume level ( 4 lac)  the script is trying to go higher, so in this case volume representing buying interest from the market.

In front of navana there is a major resistance at around 82 tk , which if breached successfully can usher the script to 100+ levels quit easily, since 82 tk has been a major resistance for navana since year 2012.

Notice in the chart that ema 20 (blue) is still above ema 50 ( red ) so still the script is maintaining the up trend position. One can set the stoploss line at 67 tk safely since it also is the current EMA 200 ( green) .

SO one are risking 4 tk to potential gain of taka 10 tk ( 82 first target) . This has a risk reward ratio of 1:2.5 so this trade has a good up side potential. Also if navana can break and maintain price level above 82tk one can safely add to position bringing average around 76 tk.

ATR stoploss should be used accordingly if the script rises up. A careful eye at the volume should be first priority.

On a side note although navana is listed in ENG sector it is more of an energy stock being engaged in LPG sector of Bangladesh.

Navana is a medium cap company with paid up of only around 68 crore taka , that is around 6.8 cr share. Of which 57% is free float so about 4 cr share is available for trade anytime.

Update 16/july/2018

update 16th july

Disclaimer: This is a article written purely for amarstock limited and only for research/academic purpose. Author is a paid employee of amarstock ltd and he or amarstock ltd doesn’t hold any responsibility that might arise from taking trade actions based on this article. Amarstock ltd and the author doesn’t hold any stock at the mentioned company in the article. This article in no way or form is a buy/sell recommendation. 

asadul

I would summarize me and my goals very simply “equity trading” . I have been an active trader in the equity market since the year 2006 and has been working full time as an analyst at amarstock ltd since inception after getting my Msc in accounting degree from Minnesota State University. Although amarstock is a startup me and my team love it as only passion and dreams should be loved. One thing i miss in dhaka stock exchange is the lack of short side play. I wish to trade in a market where shorting is an option. …Looking forward to get my CFA & CMT exams done with.

www.linkedin.com/in/asad-ul-islam-macc-55553a57/