Short-term traders can look to buy the stock on dips for a possible target of Rs 24000 in the next 3 months, suggest experts.
The auto component maker hit a fresh 52-week high of Rs 20,920 on 13 October 2023. The stock rose more than 6% in a week and 7% in a month, data showed.
The recent momentum helped the stock to break out from an 8-year falling trendline and 4 years of consolidation on the monthly charts.
The stock hit a high of 27,989 in March 2015 and has undergone price correction since then. The stock closed below 20,000 in 2018-2019 and then found support above the 200-month moving average.
The stock recently climbed above the 50-Month Moving Average in July 2023 which added momentum to the stock. The stock finally climbed above the 20,000 mark in October which led to the breakout from a 4-year consolidation on the monthly charts.
In terms of price action, the stock is trading well above crucial short- and long-term moving averages such as 5,10,30,50,100, and 200-DMA which is a positive sign for the bulls.The daily Relative Strength Index (RSI) is at 74.5. RSI above 70 is considered overbought. This implies that stock may show pullback, Trendyne data showed. The daily MACD is above its center and signal Line, this is a bullish indicator.
“The Nifty50 appears to have found support at the level of 19500 and is currently maintaining above the level of 19800, which is a positive sign for the bulls. In addition, the auto sector is performing well in terms of price performance,” Kapil Shah, Technical Analyst, Emkay Global Financial Services Limited and Trainer at FinLearn Academy, said.
“One stock that has attracted attention is Bosch, which has undergone 10 years of technical development. The stock has broken an 8-year falling trendline and a 4-year consolidation, which is a significant development,” he said.
“On a weekly timeframe, the stock has surpassed the 26-week trading zone on the higher side, indicating bullish momentum. The stock is trading above short to long-term moving average, which explains the positive momentum in the stock,” highlights Shah.
“Based on the rationale mentioned above, the stock presents a good buying opportunity in the range of 20,400 to 19,700, with a stop loss of 18,500. The stock has an upside potential of up to 24000, and the suggested duration is 3 months,” he recommends.
(Disclaimer: Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of the Economic Times)