Exide Industries (₹184.6): Buy
The stock of Exide Industries gained almost 7 per cent accompanied by extraordinary volume on Friday, breaking above a key long-term resistance at ₹175. This rally provides investors with a medium-term perspective, an opportunity to buy the stock at current levels. Since it took support at ₹125 in late March, the stock has been on an intermediate-term uptrend.
After encountering the long-term resistance at ₹175 in late August, the stock was on a corrective decline until late October. Thereafter, it began to trend upwards and has been on a short-term uptrend.
During the rally, the stock had conclusively breached the 50 and 200-day moving averages in early November. It trades well above these moving averages.
There has been an increase in volume over the past three weeks. Further, the daily relative strength index hovers in the bullish zone and the weekly relative strength index has entered this zone from the neutral region, backing the bullish momentum.
Besides, the daily as well as the weekly price rate of change indicators are hovering in the positive terrain, implying buying interest.
The medium-term outlook is bullish for Exide Industries and the stock has the potential to trend upwards. The medium-term targets are ₹200 and ₹215 with a small pause at around ₹200. Investors with a medium-term horizon can buy with a stop-loss at ₹170.
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