Technical Check: Voltas eyes breakout on charts; poised to hit fresh highs in next 6-9 months

Consumer electric company Voltas Ltd shares have risen 29 per cent in the last one year compared to over 17 per cent upside seen in the Nifty50.

The company, which is engaged in the business of air conditioning, refrigeration, electro-mechanical projects as an EPC contractor both in domestic and international geographies (Middle East and Singapore) is one of the best play to beat the heatwave.

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The stock with a market capitalization of nearly Rs 42000 cr hit a 52-week high of Rs 1356 in October 2021, and the trend went sideways after this. The stock was moving in a broad range of nearly 200 points on daily charts.

The stock has been volatile since last October but it is now trading near the breakout levels which makes it an attractive buy for a bigger target towards Rs 1500 in the next 6-9 months, suggest experts.

The stock after hitting a 52-week high of Rs 1356 on 19 October 2021 found support near Rs 1100 levels in November and slipped below Rs 1100 in March to record a vertical rise which took it towards 1300 levels in 7 trading sessions.

The vertical rise seen in the stock makes it an attractive buy and is also trading near the breakout level of Rs 1320-1140. A close above this level could take the stock towards fresh 52-week highs, suggest experts.

Technically, the stock is trading above short- and long-term moving averages of 30,50,100, and 200 DMA which is a positive sign.

“The stock price hit an all-time high of 1357 in the month October last year and since then been sideways. It has been consolidating its gains after the up move and formed a base for next leg of the rally,” Ashish Chaturmohta, Director, Equity Research, Sanctum Wealth, said.

“Price has taken support at 50-week moving average (green line) and bounced back. Price is now at breakout level of the range 1320-1140. It has formed long-ranged bullish candlestick above breakout level indicating buying momentum in the stock,” he said.

Chaturmohta further added that the stock can be bought at current levels on dips to 1245 with a stop loss of 1200 for the target of 1500 in the coming 6-9 months.

(Disclaimer: The views/suggestions/advices expressed here in this article is solely by investment experts. Zee Business suggests its readers to consult with their investment advisers before making any financial decision.)