Balkrishna Industries Stocks May Trade 20% Higher the Breakout Level!

On Tuesday, Nifty opened gap up and traded higher. In such a strong bullish trading session, tyre sector stocks witnessed strong buying activity and one stock from the same sector showed decent strength and registered a breakout of continuation pattern weekly charts.  

The stock Balkrishna Industries Ltd. engages in the manufacture and sale of off-highway tyres. The firm’s Off-Highway Tire segment consists of Agricultural, Industrial and Construction, Earthmovers and Port, Mining, Forestry, Lawn and Garden, and All Terrain Vehicles (ATV) tires. The company was founded on November 20, 1961 and is headquartered in Mumbai, India. 

Technically on weekly charts if we draw the trendline from the highs of mid-week of January 2022 (Rs 2537.45) and first week of August 2022 (Rs 2450) we get the trendline of continuation pattern named “Bullish Pennant pattern” and trendline drawn from the lows of first week of March 2022 (Rs 1690.55) and mid-week of November 2022 (Rs 1796.30) is the bottom side of pennant pattern which also supported by 150 week moving average. Low of this pennants pole is Rs 679 which was made in mid-week of March 2020. Considering all these levels, minimum possible targets of this pattern will be around Rs 3000 which is more than 20% higher from breakout level. 

On daily charts, from the low of March 27, 2023 stock started its journey towards the breakout. Currently it is trading around Rs 2386 level and ready to close around the day’s high. Closing around this level will confirm the breakout. After the strong and steep up move of the last 2 trading sessions it may consolidate for a few sessions. Upward trend in daily volumes supporting this breakout and positive crossover of 5-13-26 DMA indicates strong momentum. 

Thus, it needed to be on radar for the next few days. Long term investors looking for opportunities in the tyre sector should track it closely. 

Currently, the shares of BALKRISIND have hit the day’s high of Rs 2415.15 and are up 4% intraday.