Breakout soon candidate: Keep this tyre stock on your radar
Shares of Balkrishna Industries gained over 1.5% on Tuesday.
Balkrishna Industries Limited is engaged in manufacturing a range of off-highway tires. These tires are mainly meant for agricultural, industrial and construction, earthmover and port, mining and all-terrain vehicles (ATV).
The stock of Balkrishna Industries gained over 1.5% on Tuesday. It is on the verge of a breakout of nine-month consolidation which has taken a shape of a triangular pattern, signalling the resumption of up move and offering fresh entry opportunities. The stock has jumped over 13.5% from its recent swing low which was registered in June.
Technically, the stock is trading above its key important moving average like 20, 50, 100 and 200-DMA. The daily 14-period RSI is trading in the bullish territory after forming a base at the nine-period moving average thus supporting the positive bias. Furthermore, the daily MACD is pointing northward while sustaining above its nine-period average which further reaffirms positive bias in the stock. Also, the MACD histogram shows bullish momentum is picking up.
The Elder Impulse System has formed a series of bullish bars and the stock is trading above the Anchored VWAP, anchored from the all-time high level. The +DMI is above -DMI and ADX. Improved strength in ADX is also a positive sign for the stock.
Going forward, keep a close eye on the level of Rs 2330 as a close above this level would result in a breakout of triangular pattern and the stock can see a quick move towards levels of Rs 2460-2540 in the medium term. Meanwhile, on the downside, the level of Rs 2200 is likely to act as immediate support for the stock and a close below the level of Rs 2200 would negate the bullish view on the stock.
The stock has gained more than 3.5% in the last week and in the last one month it is up by over 6%.
About the Author
DisclaimerInvestment/Trading in securities Market is subject to market risk, past performance is not a guarantee of future performance. The risk of loss in trading and investment in Securities markets including Equites and Derivatives can be substantial. Also, The
Start Investing Now!
Open Free Demat Account in 5 mins