Technical Analysis

ABB India (₹1,532.8): Buy

Akhil Nallamuthu BL Research Bureau | Updated on February 19, 2021

The stock of ABB India, which underwent price correction during the first two weeks of this month, found support at ₹1,420. It bounced back of this support on Thursday and the scrip marked a fresh 52-week high of ₹1,570 before closing the session a bit lower at ₹1,532.8. The breakout has opened the door for further strengthening and so traders can buy the stock for the short term.

After registering a multi-year low of ₹722 in May 2020 the stock bounced, and it tried to establish an uptrend. However, after touching ₹1,000, fuel dried up and the scrip stayed flat. It was oscillating within the broad range of ₹850 and ₹1,000 between June and November last year. But the stock breached the ₹1,000-mark in December and since then, the direction has been up and steady. It has consistently rebounded from the 21-day moving average, showing that the uptrend is strong. Substantiating this, indicators like the RSI and the MACD are bullish. Hence, traders can buy the stock with stop-loss at ₹1,500 for a target of ₹1,600.

(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)

Published on February 19, 2021

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