hit fresh 52-week high in December; time to buy, sell or hold?
India, part of the personal care space, which has rallied more than 8% in a month to hit a fresh 52-week high in December is likely to continue its bull run in the future.
The personal care maker hit a 52-week high of Rs 610 on 7 December 2022. It witnessed some profit taking but experts feel that technical setup suggests the next target is placed around Rs 660 level.
The stock has breached a tiny falling trendline and immediate hurdle indicating a resumption of positive movement on the monthly charts.
On the weekly charts, the stock is making a higher high and higher low, and on the daily charts as well the stock has formed a flag pattern on daily charts, suggest experts.
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Dabur India is one of the leaders in ayurveda with a portfolio of over 250 products.
The stock rose more than 1% in a week, and 8% in a month.
In terms of the price section, the stock price is trading above the crucial short- and long-term moving averages of 5,10,30,50,100, and 200-DMA.
The Relative Strength Index (RSI) is at 69.0. RSI below 30 is considered oversold and above 70 is considered overbought, Trendlyne data showed. MACD is above its center and signal line, this is a bullish indicator.
“Since the year 2011, Dabur witnessed 5 major falls, which was around 27% followed by upside movement. After a recent decline of 27%, the stock formed a strong green candle showing the presence of buyers at a key support level,” Kapil Shah, Technical Analyst, Emkay Global Financial Services and Trainer- FinLearn Academy, said.
After an intermediate correction of 27%, the stock took support at the role reversal level. Earlier, the stock’s price level of Rs 500 acted as resistance which turned out to be a support level for the recent decline.
“Horizontal support line also coincides with the moving average. As a follow-up sign, Stock has breached a tiny falling trendline and immediate hurdle indicating resumption of positive movement,” he said.
“On a weekly chart, Stock has started to form higher high and higher low sequence and cup and handle pattern, it is a positive development. The stock has formed a flag pattern on the daily chart,” highlights Shah.
“Based on multiple time frame analysis, charts are harping on the same string. Bull’s will hold their ground as far as the price sustains above Rs 560 level. Moving below the Rs 560 level can be considered as weakening strength of bulls,” he said.
“Traders can accumulate Dabur in the range of Rs 600-590 for a target of Rs 660 in the next 2 months. A stop loss can be placed at Rs 560,” recommends Shah.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
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