Technical Bits: Check on Asian Paints before earnings

India’s top, Asia's third-largest and one of the world's top decorative coating companies, Asian Paint will report its December quarter results today. Here is a sneak-peek to the stock's technical position.

Technical view: The stock has strong resistance placed in the region of Rs. 1,435-1,440 and a sustainable move above this resistance zone would open gates for an up move towards levels of Rs. 1,460-1,490. While any move below the levels of Rs. 1,380 would be negative for the stock as it would result in a breach of rising trend line formed by connecting lows registered in the month of October-December, 2018. The 14-period RSI since the last week of December 2018 has been in compression as it has oscillated in a range of 54-62.

Asian Paints manufactures a wide range of paints for decorative, automotive and industrial use. In decorative paints, it is present in all the four segments; interior and exterior wall finishes, enamels and wood finishes. The company’s region-wise revenue from International operations in FY 2017-18 are as follow as Asia contributes the lion’s share at 49 per cent, while the Middle East contributes 24 per cent followed by Africa and South Pacific with 21 and 6 per cent contribution, respectively. 

Asian Paint was quoting around levels of Rs. 1,414.50 on the NSE exchange, which was a decline of about 0.54 per cent from the previous day closing levels.