Chart Check: Balkrishna Industries rallies 20% in a month! Time to add more or book profits?

Balkrishna Industries, part of the auto component industry, hit a fresh 52-week high last week in May 2023 but the rally might not be over yet, suggest experts.

Short-term traders can look to buy the stock now or on dips for a possible target of Rs 3,000 in the next 2-3 months, they say.

The stock hit a fresh 52-week high of Rs 2,490 on 26th May 2023. However, the all-time high is placed at Rs 2,724 recorded on 23rd September 2021.

Last week, the stock also gave a breakout from a symmetrical triangle pattern on the weekly charts which adds to the bullish bias.

The stock witnessed some consolidation after hitting a high of Rs 2,347 in February 2023. The stock seems to have made a strong bottom above Rs 1,800 levels from where the stock bounced back sharply.

The supertrend indicator also triggered a buy on the weekly charts after a sharp move last week. The stock rose more than 14% in a week.

The stock is trading near overbought levels; hence, some consolidation could be on the cards. The Relative Strength Index (RSI) is at 75.6.RSI above 70 is considered overbought. This implies that the stock may show a pullback. MACD is above its center and signals Line, this is a bullish indicator.


“The stock of Balkrishna Industries has made a good base around the level of 1800 post the correction from September 2021. The stock in the latest week has given a breakout of the Symmetrical Triangle pattern indicating reversal to the upside,” Omkar Patil, Technical Research Associate at GEPL Capital, said.

“The stock has sustained well above 18 weeks SMA which acted as a variable support to the prices. The RSI on the weekly timeframe has shown a breakout which reflects the presence of positive momentum,” he said.

“Going ahead, we expect the prices to move higher towards Rs 3,000 level in the short term where the stop loss must be Rs 2,270 strictly on the closing basis,” recommends Patil.

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

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