Quick look – EUR/GBP

EURGBP D1 (05-31-2016 1400).png

Daily chart clearly shows head and shoulder breakout and falling channel. watch for a day end closing above 0.7633 as that could yield 0.77-0.7720 tomorrow.

 

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Colours of stocks – Asian Paints

Last quarter was good in terms of sales for Asian Paints. It maintained top position among its peers by earning a revenue of Rs. 3171 crores. Despite a dull year, the company managed an annual revenue growth of 9.5% and earnings growth of 23.8%. It got benefited by low prices of crude as crude being the major raw material. Company also cut its prices by 2%.
However Brent crude slumped 22% during the quarter, therefore raw material prices are expected to remain low and support margins, but they may not be sustainable in the year to come.

Asian Paints also entered in waterproofing market which was dominated by companies like _Pidilite_ (Dr. Fixit). The company is finding the growth in smaller towns.
Fundamentally speaking, the company is having great potential to grow as it has various product range to offer. Investors can remain optimistic on this stock. This year rains are expected to be above average; which will see great demand from rural area and Tier-III towns post monsoon..