Technical Stock Pick: Havells India breaks out from 29-month consolidation to hit fresh record highs; time to buy?

Short-term traders can look to buy the stock now for a target of 1700 levels in the next few months, suggest experts.

The stock rose from Rs 1312 as on 1st December 2023 to Rs 1576 recorded on 2nd March 2024 which translates into an upside of over 20% in the last 3 months.

The stock hit a fresh record high of Rs 1590 on 2nd March 2024.

The stock hit a high of Rs 1503 in October 2021 and since then it has been consolidating where levels above 1000 acted as a strong support while on the upside 1500 acted as a stiff resistance on the monthly charts.

Havells India stock finally broke out from the said range last month. The stock ended a 29-month long consolidation to hit a fresh record high in March 2024.In terms of price action, the stock is now trading above crucial short- and long-term moving averages such as 5,10,30,50,100 and 200-DMA on the daily charts which is a positive sign for the bulls.

The daily Relative Strength Index (RSI) is placed at 72.5. RSI above 70 is considered overbought. This implies that stock may show pullback. The daily MACD is above its center and signal Line, this is a bullish indicator.

“Havells India gave consolidation breakout on monthly scale after twenty-nine months and formed a strong bullish candle. On the weekly scale, it gave a range breakout with a good surge in volumes,” Arpit Beriwal, Analyst, Equity Derivatives & Technicals, MOFSL, said.

“On the daily scale the stock is forming higher lows from past two sessions in spite of market weakness and managed to close above 1500 zones,” he said.

Momentum indicator Relative Strength Index (RSI) is holding at higher zones which suggests momentum to continue in coming sessions.

“Thus, looking at the overall chart structure we are recommending to buy the stock with keeping stop loss below 1460 levels on a closing basis for a new lifetime high target towards 1700 zones,” recommended Beriwal.

(Disclaimer: Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of the Economic Times)