hort-term traders can look at entering the stock now or on dips towards Rs 121-116-105 for a target closer to Rs 200 in the next six months, suggest experts. On the price front, Jamna Auto is trading above all the crucial short and long-term moving averages such as 5, 10, 20, 50, 100, and 200-DMA, which is a positive sign for the bulls.
Jamna Auto Industries Ltd, auto component and equipment makers, has given multibagger returns from Covid lows in the last two years and technical parameters suggest that the rally is not over yet.
The stock rallied after hitting a low of Rs 21 on 24 March 2020. It closed at Rs 128 on 6 July 2022, an upside of over 500 per cent. The stock jumped by about 50 per cent in the last year, data showed. The momentum remains strong as the stock is moving in a higher high and higher low formation on the daily charts. It hit a record high of Rs 135.55 on 4 July 2022.
Short-term traders can look at entering the stock now or on dips towards Rs 121-116-105 for a target closer to Rs 200 in the next six months, suggest experts. On the price front, Jamna Auto is trading above all the crucial short and long-term moving averages such as 5, 10, 20, 50, 100, and 200-DMA, which is a positive sign for the bulls.
The Relative Strength Index or the RSI is 73.1. RSI above 70 is considered overbought. This implies that the stock may show a pullback. MACD is above its center and signal Line, a bullish indicator, Trendlyne data showed.
The stock price started its up move from Rs 21 (March 2020) to 124.9 (Jan 2022), making a series of higher bottoms and higher tops. During the move, the stock continuously traded above averages, and Super Trend was in positive mode.
“Slight profit booking followed, and the stock corrected to Rs 95 in March 2022. A higher bottom at 97.65 followed, and the stock started its up move again. From January 22 to June 22, the stock traded in (Rs 95-125) price range,” said Bharat Gala, President - Technical Research, Ventura Securities.
“A Weekly Bullish candle, supported by volumes, has been formed. The KST, Vortex & Demand Index Indicators have generated a buy signal. The possible targets are Rs 200,” he added.
Gala further added that if the stock price corrects downwards, the buy levels are Rs 121-116--112-108-105. A stop loss to be observed in the trade is Rs 99.
(Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of Economic Times)
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