Havells India bounces from upward sloping trendline support
The stock of Havells India Limited is trading in the rising channel since October 2016. Considering the weekly time frame, the stock has given a bounce from the edge of the rising trendline support and it is coinciding with the 100-week exponential moving average. The reversal from the support is confirmed by the above 50-week average volumes. Additionally, the stock has formed a sizeable bullish candle on daily time frame, which suggests the bulls are taking control near the long-term support.
The stock is trading above its weekly pivot and also above its short and long-term moving averages. The 14-period weekly RSI has taken support at 35 level many times before, and this time also it has bounced exactly from the same level. Interestingly, the stock has never been in an oversold position in the past 10 years on a weekly chart. The weekly stochastic oscillator is also suggesting some bullish strength as %K is above the %D. Moreover, the ADX and +DI is above the -DI, which indicates positive strength in the stock.
Going ahead, we expect the bias to remain positive as long as the stock sustains above the Friday’s low of Rs. 638.60 level. On the higher side, the level of Rs. 740, followed by Rs. 762, would be seen as the next resistance zone for the stock.
On Friday, the stock of Havells India closed at Rs. 733.40 per share, higher by 13.70 per cent from its previous close. The stock opened at Rs. 648 per share and hit an intraday high of Rs. 737.40 and a low of Rs. 638.60 per share on NSE.