Havells India has retraced 50 percent of prior up-move (Rs 484 – Rs 559) and later reversed after taking support of its long-term moving average (100-day
EMA). On the daily chart, the stock has formed a bullish reversal pattern-Piercing Line.
The key technical indicators are trading below their averages, signaling near-term consolidation in the stock before it resumes the northward journey and revisit the life-time-high.
In case of any decline, the stock will find strong support around its 200-day EMA. Thus long position can be initiated here for the target of Rs 592 with a stop loss of Rs 510.
We have a buy on the stock with target of Rs 592 per share with stop loss at Rs 510.
Disclaimer: The author is Senior Research Analyst, at Reliance Securities Ltd. The views and investment tips expressed by investment experts on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.