The heavy electrical equipment maker hit a new 52-week high at 2,488 rupees on June 1. The stock has been on buyers’ radar for a few weeks.
It gave a breakout from a declining channel pattern this week on the daily charts, which paved the way for targets in the range of Rs 2,600-2,700 over the next couple of weeks, suggest experts.
The stock closed up 1.1% at Rs 2,456 on BSE. rose almost 11% in one week and more than 17% in one month, according to data from Trendlyne.
“ Back to recommendation stories
The stock has corrected by more than 20% from hitting Rs 2,468 in January 2022 to a low of Rs 1,944 in March 2022, which also coincides with the long-term moving average of 200-DMA.
The bulls took control and pushed the stock higher. It took support again near its 50-DMA in May and then rebounded to a new 52-week high.
The Relative Strength Index or RSI is trading in the mid-range. The RSI is 67.7, RSI below 30 is considered oversold and RSI above 70 is considered overbought. The MACD indicator is above its center and the signal line, which is a bullish indicator.
On the price front, the action is trading above the crucial short-term and long-term moving averages of 5, 10, 20, 50, 100, and 200-DMA, which is a positive sign for bulls and suggests that the dynamic is intact.
“The stock, after a long period of consolidation, gave a new break on the daily chart. On the F&O front, aggressive bullish positions have been taken since the last two days where a new long accumulation is visible”, Kunal Shah, Senior Technical & Derivative Analyst at
“Momentum oscillators are in a strong buy zone, confirming the internal strength of the stock. target of Rs 2,600 to 2,700 on the upside,” he added.
(Disclaimer: The recommendations, suggestions, views and opinions given by the experts belong to them. These do not represent the views of Economic Times)