Exide Industries shares zoom 46% in a month; how long will this rally continue?

Exide Industries shares zoom 46% in a month; how long will this rally continue?

Shares of Exide Industries Ltd continued their winning run in Tuesday’s trading session. The stock ascended by 9.45 per cent to hit a record high of Rs 447.85. At this price, it has gained 45.86 per cent in a month. At the same time, the scrip has given multibagger returns by rallying around 135 per cent in the past one year.

Post this stellar run, technical analysts suggested that the counter has entered into the overbought zone. Some of them said it may see some profit booking in the near term. Immediate support could be seen at the Rs 430 zone while resistance may be found at Rs 452. And, a decisive close above the said resistance level is required to trigger a further upside.

Osho Krishan, Senior Research Analyst – Technical & Derivatives at Angel One, said, “Exide Industries has soared around 50 per cent in the current trading month and has entered into the overbought territory. The biases remain bullish, though post the stellar run, the counter may attract some profit booking in the near period. It is advisable to refrain from aggressive longs and follow a pragmatic approach by trailing stop losses. For now, Rs 420-400 seems the immediate support zone for the counter.”

AR Ramachandran from Tips2trades said, “Exide Industries is bullish but also very overbought on daily charts with next resistance at Rs 464. Investors should keep booking profits as a daily close below support of Rs 430 could lead it to a lower level of Rs 375 in the near term.”

Ravi Singh, Senior Vice-President (Retail Research) at Religare Broking, said, “The stock is in fresh uptrend, looking strong on daily charts. It may head towards Rs 460 level in the near term. Keep stop loss placed at Rs 430.”

Jigar S Patel, Senior Manager – Technical Research Analyst at Anand Rathi Shares and Stock Brokers, said, “Support will be at Rs 410 and resistance at Rs 452. A decisive close above Rs 452 level may trigger a further upside till Rs 468. The expected trading range will be between Rs 410 and Rs 475 for a month.”

Morgan Stanely recently underscored that Exide Ind shares can rise significantly over the next decade as the firm could become a leading player in battery cell localisation. The global brokerage has raised its target price on the battery maker’s shares to Rs 485 from Rs 373 earlier with an overweight rating.

Earlier this month, Exide announced that its wholly-owned unlisted subsidiary (Exide Energy Solutions Ltd) has signed a non-binding memorandum of understanding (MoU) with Hyundai Motor Company (Hyundai Motors) and Kia Corporation (Kia) for strategic co-operation in India’s EV (electric vehicle) market.

As of December 2023, promoters held a 45.99 per cent stake in the storage battery manufacturing firm.

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