Minda Industries Stock Chart Check: Breakout of the lower channel signals a resumption of upside for this bearish automotive auxiliary stock

Minda Industries, part of the automotive auxiliary space, plunged more than 25% from December 2021 highs, effectively putting the stock in a bearish grip, but the chart pattern suggests the bulls could take control after a recent breakout on the weekly charts.

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.

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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)

Karen J. Nelson