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Dolat Investment Ltd - Long term - Long

Hi Friends,

Pranam!!!

We are going to analysis the script in the small cap finance segment company Dolat Investments Ltd!!
Fundamentally Script was very good based on the following basis screening:

1. Company Profit growth for the last 5 financial years was above 20pct.
2. Sales growth of the company was above 5pct
3. Average return on capital employed for the last 5 financial years was above 20pct.
4. Average return on equity for the last 5 financial years was above 20pct.
5. Debt to equity was below 1 pct.
6. P/E of the company is lesser than the industry P/E.
7. Finally, PEG was below 1.

On technically ground.

The script was breaked the parallel channel in the weekly time frame and its once again retested the level where resistance of 87 now turns support.
لقطة

The trend as per EMA200 evidence bullish bias in daily TF and also the script has support at 89 & 72 and resistance at 105,116 and 128 respectively and script was retraced to the FIB retracement level of 61.8 pct and same was marked in the chart.
لقطة

The dynamic support as per daily TF was at 92-99 as per EMA50-EMA79
لقطة

MACD in 2hr & daily TF was in oversold area and in weekly TF it was in the overbought zone.
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Stochastic RSI was in Oversold Area in daily and Weekly TF and Overbought zone in 2hr TF.
لقطة

CPR of Daily TF was in the bullish bias compared to previous month and its was in the average CPR.
CPR of July month is a virgin CPR which can act as support.
لقطة

ATR Volatility was in the peak in daily TF.
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ATR Volatility in the 2HR TF was in the down, evidence for a breakout.
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In 2hr TF:

Script was evidence in the ascending triangle pattern where the Higher High and Higher Low.
لقطة

Based on the above, we conclude that the script was good for Long Term both fundamentally and Technically.

Entry -Brakes above triangle
SL - 96 - 1ATR of Daily TF.
Target - 120 and 128

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