Minda Industries Stock Chart Check: Breakout of the lower channel signals a resumption of upside for this bearish automotive auxiliary stock
The automotive auxiliary stock hit a 52-week high of Rs 1,260 on December 29, 2021, but failed to sustain momentum. The stock closed at Rs 943 on June 29, 2022.
The stock rebounded from hitting a low of Rs 836 on June 7 to recover 50 and 200-DMA on the daily charts, which is a positive sign for bulls.
The automotive and automotive auxiliary space extended its outperformance as the Nifty Auto index is poised to surpass its multi-year highs since CY17.
Within the auxiliary car,
offers a favorable risk-reward proposition in the current market environment, experts suggest.
From a fundamental perspective, the consensus recommendation from 17 analysts for Minda Industries is a buy, according to data from Trendlyne. The average weekly delivery volume of Minda Industries is 44.16%, which is also a positive sign.
On the weekly charts, the stock managed to reclaim its 50-week short-term moving average SMA, which is a sign of the stock’s rise.
The momentum remains strong despite the moderate trend observed in D-Street. The stock rose more than 8% in a week and more than 5% in a month, outperforming the benchmark.
“The stock saw a breakout of the downside channel after a strong base formation in the major support area around Rs 860 as this is the 52-week rising EMA (currently set at levels of Rs 860) signaling a resumption of the upward move and providing a new entry opportunity,” Dharmesh Shah, Chief Technical Officer, ICICI Direct said in a note.
“We expect the stock to extend the current rise and head towards the Rs 1,070 levels in the coming months as this is the 61.8% retracement of the decline from January to May 2022 ( Rs. 1,244-768),” he said.
The weekly RSI recently generated a buy signal moving above its 9-period average. Thus, it validates the positive bias, Shah recommends.
(Disclaimer: The recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
