Gillette India Limited (earlier known as Indian Shaving Products) manufactures variety of razors, shaving catridges, gels and oral care products. It also markets Duracell batteries. The company has presence in India for more than two decades and US shaving major Gillette (which was acquired by Proctor and Gamble in 2005) has 52% stake.
Let's review the short term, medium term and long term outlook of the stock.Short term outlook:
The stock was moving in sideways pattern since January 23, 2008. This three month consolidation pattern was broken yesterday with very good volume as shown in the chart. If the stock manages to close above 977 today, one may expect 1087 and 1176 in the short term.
Medium term outlook:
Weekly chart indicates that the stock has fallen from a high of 1548 to a low of 800 between December 2007 and March 2008. Note the bearish three outside down pattern at the top of the uptrend. The doji formation after a long white candle is usually a sign of trend reversal and it was confirmed by the bearish three outside down pattern. The stock managed to hit the medium term support at 800 and bounced back. Medium term target for the stock works out to 1265.
Long term outlook:
In long term chart, the stock is moving in an ascending channel or rising channel pattern. As such, the prices are within the upper and lower trendlines; no breakout on either side could be seen. The confirmation of a downside breakout or sell signal will be known only when the stock pierces the lower trendline and closes below it. Though the stock had two recent lows below the lower trendline, it has not closed yet. This means that long term investors may hold the stock.