Borosil Renewables: A Smart Long-term Buy

A part of the Borosil group, Borosil Renewables is a pioneer in speciality glass products. They are the only solar glass manufacturer in India and sell internationally as well. In the coming future, the company plans on increasing exports by tapping more customers in Europe and America. 

While the future seems bright, currently the counter is available at support levels. By taking an entry at a lower price we can enjoy a favourable risk-reward ratio and make good returns.

Let’s look at the charts to understand why this may be a great opportunity for long-term investors.

Weekly: Price Action

After being in sideways consolidation during 2019 and 2020, the counter saw a brief uptrend in 2021. In the past one and a half years, it has seen a price correction and has entered sideways consolidation again.

Weekly: Indicators

The counter can be seen taking support at the same point near 410 levels. 

The purple indicator RSI is a leading indicator. It is pointing upwards and about to cross the halfway mark indicating strength in the counter. 

The MACD indicator, at the bottom of the screen, is a lagging indicator. It has begun to move up from the bottom and is gaining strength. The blue line crossing the red line has given a bullish view. This will be confirmed when it crosses the zero line. 

Weekly: Fibonacci Retracement

The counter has taken the trendline support indicating that it may not dip further. This is confirmed by Fibonacci retracement. The support is taken at the 50% mark, near the 410 zone. This is a good bargain-buying opportunity.

Daily: Price Action

On the daily chart, we can see the time and price correction of the counter. After nearly a year long down rally and sideways consolidation, the counter has seen approximately a 50% correction.

Daily: RSI Indicator

We can see RSI divergence on the daily chart as well. It has already crossed the halfway mark and is shooting upwards. This is a good sign of strength in the counter.

Daily: Trend Line & Volume

Finally, the relatively high volumes on the daily chart indicate that the counter may pick up as

more people start buying it at this low level. 

Comparative Chart: Borosil Renewables v/s La Opala v/s Saint Gobain

On the comparative chart, we see that competitors La Opala and Saint Gobain are also in an uptrend. However, Borosil Renewables is available to us at support levels hence offering a favourable risk-reward ratio.  The counter may pick up to catch up with its competitors.

After looking at the different time frames, time and price correction, we expect Borosil Renewables to enter an uptrend in the near future. From a positional point of view, this counter offers the best risk-reward ratio. One can create a long position with the minimum downside. 

Statutory Disclosure: Kindly note that this update is only for educational purposes. It is safe to assume that our personal position, our fund’s position, our clients’ positions may be open on the counter. Prefer to take the advice of your financial advisor before initiating any position.

---------------------------------------------------------------------------------------

This blog is written by Natasha Dedhia, under the guidance of Kunal Rambhia.

For more such blogs and updates, follow Ajira Financial Academy on:
Instagram
Facebook
LinkedIn
Twitter

We also conduct a month-long Masterclass on Technical Analysis - perfect for beginners!

For more details, please feel free to contact us at +919820587124

Or write to us at ajirafinancialacademy@gmail.com

You can also fill this google form and we'll get back to you ASAP!