Colgate-Palmolive falls to two-year low despite Q2 growth

Colgate Palmolive (India) Limited shares fell as much as 5.76% to a fresh 52-week low despite Q2 profit growth of 4.3%. Support is at Rs 1,570. Colgate Palmolive (India) Limited [

] shares fell as much as 5.76% intraday on 23 October and hit a fresh 52-week low of Rs 1,588, a two-year low. It is the sixth straight session of losses. The stock traded at Rs 1,603.20 around 1:25 pm. Q2 profit rose 4.3% to Rs 341.6 crore from Rs 327.5 crore a year earlier. Revenue grew 12.3% to Rs 1,705.8 crore from Rs 1,519.5 crore. Revenue grew faster than profit. The update gives no margin data, so the reason for the fall cannot be tied to the results alone. The session opened at Rs 1,680.00 and touched a high of Rs 1,696.80 before selling set in. On the daily chart, the stock has fallen steeply from its peak and keeps making lower highs and lower lows. In my view, the trend is bearish, since a fresh low after six straight losses shows sellers in control. A fall below Rs 1,570 would put lower levels in view. A move above the Rs 1,720 resistance would weaken the bearish view and bring a recovery attempt into focus. Bearish view while price trades below Rs 1,720. Disclaimer: I do not hold any position in this. This content is for informational purposes only and is not a recommendation to buy or sell. Investments in securities are subject to market risks. Please read all related documents carefully before investing.