• Ni Hsin Resources Bhd (NIHSIN) is one of the leading cookware manufacturers listed in Malaysia. Through its subsidiaries, NIHSIN operates in three segments: Cookware Design, which is engaged in the manufacture and sale of stainless steel kitchenware and cookware; Convex mirrors, which is engaged in the manufacture and sale of stainless steel convex mirrors, and Clad metals, which is engaged in the research, development and manufacture of clad metals.
• After bonus issue of 1 warrant for 2 existing ordinary shares of RM0.20 each in Ni Hsin (ex-date on 6 Feb 2015), share price tumbled to RM0.28. The stock is now grossly oversold, indicating a possible resumption of uptrend as “higher low” pattern in share price and oscillators on daily chart points to potential reversal to upside. Moreover, “Bullish Harami Cross” and “Tweezers Bottom” candlestick patterns on daily and weekly charts respectively suggest reversal of downtrend. Noticeably, daily and weekly oscillators (RSI, MACD and Slow Stochastics) show that share price is likely to bottom up.
• Further upsides are targeted at RM0.325 and RM0.345, with a long-term objective of RM0.385. Immediate supports are pegged at RM0.30 and RM0.29. Cut loss below RM0.28.

Source: Hong Leong Investment Bank Research - 8 Apr 2015