MEDIUM TERM PICK - ESS DEE ALUMINIUM

ESS DEE Aluminium

BSE: 532787    NSE: ESSDEE      CMP: 176.00 Ess Dee Aluminium is a packaging solution provider company especially to the pharma industry. Its weekly chart of share performance shows that it had reached a high of Rs 534.90 sometime in the middle of the
year 2010. The share could not go up beyond that peak and gradually turned bearish and reached a low of Rs 379 in January, 2011. A technical rally helped it to rise upto Rs 493.10 but the general market trend still being bearish the share entered a downtrend which coincided with some negative factors pertaining to its own functioning, sent its price tumbling down to a low of Rs 178.00 about two weeks ago. But in the last couple of weeks, the share did not go further down and managed to inch up in the last week with its peak during the week being at Rs 190.95 and closing on Thursday being at Rs 188.10 is still very much below the short-term moving average, makes it a good long-term buy because it seems to have already discounted all the worst and any positive factors that might surface, would help it to appreciate. The share of Ess Dee Aluminium is therefore, suggested to be picked up for medium-term investing.