Stock of the Day – Heritage Foods

Heritage Foods is one of the few listed stocks exclusively focused on dairy though in recent times they have ventured into food and grocery retailing under the brand “Heritage Fresh” as well. The stock saw a major re-rating in mid June 2012 when it started to move higher and tripled in price by the end of 2012. 2013 was a year of consolidation for the stock as it slid down in a broad channel formation. January has been a good follow up month after the rise we saw in December and with today’s rise, we are once again testing the upper trend line of the channel. 

A break-out above the channel can provide for a move of at least 75 rupees which is the width of the channel though a reversal here may see it go back to its support level of 200 EMA at the very least.

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About Prashanth

Have been a full time participant in the stock markets since 1996. Run a Yahoo Group where focus is exclusively on discussions of the Indian Markets using Technical Analysis as the tool (groups.yahoo.com/group/technical-investor)
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