Havells India gives symmetrical triangle breakout

Havells India Limited gave a breakout of the symmetrical triangle along with robust volumes, on Tuesday. Additionally, the stock formed a sizeable bullish candle, which adds strength to the breakout.

A symmetrical triangle chart pattern represents a period of consolidation before the price is forced to breakout or breakdown. The 14-period RSI on the daily chart is in the rising trajectory and fast stochastic is trading above its slow stochastic line which suggests bullish bias. According to the MACD analysis on the daily chart, there is a centreline bullish crossover which is positive for the stock. 

In the near-term, the zone of Rs. 725-735 will be the crucial resistance for stock. A follow-through move above this level would lead to an extension of the pull-back toward Rs. 750, followed by Rs 780. While on the downside, the zone of Rs. 685-670 will be the immediate support, as short-term 21-days exponential moving average and the downward sloping trendline are placed around these levels. 

On Tuesday, the stock of Havells India closed at Rs. 711.40 per share, up by 4.95 per cent. The stock opened at Rs. 677.10 per share and hit an intraday high of Rs. 720.30 and a low of Rs. 670.60 per share on BSE.