Amara Raja Batteries gives trendline breakout on upside

The stock of Amara Raja Batteries limited has given downward sloping trendline breakout on daily scale. The breakout was supported by relatively higher volumes. With this trendline breakout breakout, the ADX, which shows the strength of the trend, turned upside and moved above the -DI.

The major trend of the stock is bullish as it is trading above its weekly pivot and above its long-term and short-term moving averages, i.e. 20-day, 50-day, 100-day and 200-day EMAs. The leading indicator RSI is in super bullish zone and the MACD is above zero line and signal line. The fast stochastic is also trading above its slow stochastic line.

Going ahead, the stock has immediate support in the zone of Rs. 690-676 as 200-day EMA and horizontal trendline support is placed in that region, while the major support is placed in the zone of Rs. 630-615 as it is the confluence of upward sloping trendline and recent swing low. On the higher side, any sustainable move above the level of Rs. 735 is likely to open up gates for further rally towards the levels of Rs.770, followed by Rs. 800.

On Monday, the stock of Amara Raja Batteries closed at Rs. 718 per share, surged by 7.44 per cent. The stock opened at Rs. 668 per share and hit an intraday high of Rs. 731.40 and a low of Rs. 668 per share on BSE.