The stock hit a 52-week high of Rs 720 on 3rd August 2023. However, it pared some gains and closed at Rs 706 on Friday.
The stock moved in a narrow range since June 2023 on the daily charts where Rs 690 acted as resistance while on the downside support was visible at Rs 650 level which also corresponds to the 50-DMA.
The recent move was on the back of strong volumes. The stock is up more than 4% in a week and over 14% in the past 3 months.
The paint stock with a market capitalization of more than Rs 68,000 crore trades at a P/E multiple of 81.88x and a trailing 12-month earnings per share (EPS) of 8.53, BSE data showed.
In terms of price action, the stock is trading well above most of the short- and long-term moving averages on daily charts such as 5,10,30,50,100, and 200-DMA.
“Berger Paint stock price is in an overall uptrend and forming higher highs – higher lows from the past six months and forming a strong bullish candle,” Arpit Beriwal, Analyst, Equity Derivatives & Technicals, MOFSL, said.
On the weekly scale, the stock has seen a fresh consolidation breakout after six weeks above Rs 690 zones and holding well above the same.
“On the daily scale as well, we see a structure of higher highs – higher lows is intact from the past few sessions and holding strong in spite of market swings,” he said.
It is respecting well above its short-term moving average and the momentum oscillator (RSI) is above 70 zones which suggest overall strength in the stock.
“We recommend traders to buy the stock with stop loss below Rs 690 level on a closing basis for an upside target towards Rs 765 in the next 3-4 weeks,” recommends Beriwal.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)