Page 5 - 1964_Value Plus SEP 2016

RICO AUTO INDUSTRIES technical

pick

Rico Auto Industries Ltd Buy Rico Auto Industries Ltd is a world-class engineering
CMP: `66 (As on 02nd Sep, 2016) company supplying a wide range of high precision
Buy: `66-63 fully machined aluminum and ferrous components
Target Price: `78-91-106 and assemblies to automotive OEMs across the globe.
Stop-Loss: `49 Rico’s integrated services include design, development,
tooling, casting, machining and assembly across ferrous
Rico Auto Industries Ltd and aluminum products. The company offers oil pump
assemblies, fuel system parts, lube oil filter heads, exhaust
manifolds, turbine housings, center housings, back plates,
crank cases and covers, cylinder head covers, oil pans, intake
manifold covers, front covers, valve covers, side covers,
balance shafts assemblies, gear housings, and main bearing
caps, as well as water, air connections, and pressure plates.
It also provides flywheels, timing cases, oil filter adapters,
engine brackets, cylinder blocks, cylinder heads, clutch
assemblies, automatic transmission bracket assemblies,
differential case housings, gear shifts forks, wheel hubs
assemblies, brake panel assemblies, brake discs, drums, and
steering knuckles. The company serves its products to two
wheeler, passenger car, and commercial vehicle customers,
as well as to system suppliers.

Technical Outlook:

On the monthly chart, we are observing strong breakout
of downward slopping trendline. This suggests that
momentum on the upside is likely to continue. Further, the
momentum indicators are gaining strength which suggests
that up move is likely to continue.

There could be two scenarios for buying this stock:

1) Aggressive traders: Buy the stock at Rs 66 or on a
decline up to Rs 63 with a stop loss of Rs 54 for a target
of Rs 78 – 91 levels.

2) Conservative traders: Buy the stock at Rs 66 with a stop
loss of Rs 49 for a target of Rs 91 – 106 levels in couple
of months.

5 ARIHANT CAPITAL ¡ SEPTEMBER 2016