Varun Beverages Limited | Consolidation with volatility |Latest stock market news(3 minutes read)

Stock name: Varun Beverages Limited

Pattern: Consolidation with volatility

Time frame: Weekly

Observation: The stock has been in a continuous uptrend since its listing in 2017, except for covid fall. The stock is currently consolidating at its all time highs, but the consolidation is with high volatility. The wicks on both the sides of the candles indicate that strong buying and selling is happening in the stock. Usually after a rally, when a stock shows such wild moves in a consolidation, the investors have to become cautious and trail their stop losses, so that their gains are intact.

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Disclaimer: This analysis is purely for educational purpose and does not contain any recommendation. Please consult your financial advisor before taking any financial decision.

News for the day:

1) US Wall Street closed sharply lower in a broad sell-off yesterday as consumer confidence data dampened investor optimism and fuelled worries over recession and the looming earnings season. The consumer confidence data was recorded at 50, which is the lowest amongst many previous quarters.

2) Allied Blenders and Distillers has filed its Draft Red Herring Prospectus (DRHP) with SEBI for a ₹2,000 crore Initial Public Offering (IPO). The issue will consist of a fresh share issue worth up to ₹1,000 crores and an offer-for-sale of ₹1,000 crores by the promoter and existing shareholders. The proceeds from its fresh issuance worth ₹708.98 crores will be utilised for prepayment or scheduled re-payment of a portion of certain outstanding borrowings and balance for general corporate purposes.

3) The board of Route Mobile approved the buyback of shares (via. the open market) in the board meeting yesterday. The maximum buyback price is Rs. 1,700 per share and maximum buyback size is Rs. 120 crores.