Balkrishna Industries forms bullish engulfing candle

The stock of Balkrishna Industries bounced back sharply and formed a bullish engulfing candle after touching 20-day EMA and on the daily scale, which indicates bulls are taking control near the short-term support.

 The daily 14-day RSI is quoting at 62.42 and it has recently given positive crossover, which depicts positive momentum. The fast stochastic line is also trading above its slow stochastic line. The trend strength is extremely high as the ADX is above 35 and -DI is much below the +DI and ADX. Moreover, on Monday, the stock has also managed to close above its weekly pivot and above its 100-day EMA.

 However, in the near term, the zone of Rs. 890- Rs 905 is likely to act as major support as short term 20-day EMA and 50-day EMA is placed in that region. While on the upside, above Monday's high of Rs 933.30 level, the stock is likely to extend its northward journey.

 On Monday, the stock of Balkrishna Industries Limited closed at Rs. 927.70 per share, surging up by 1.59 per cent. The stock opened at Rs. 904.90 per share and hit an intraday high of Rs. 933.30 and a low of Rs. 903.55 per share on NSE.