Published on: January 8, 2024
Havells India Limited, a prominent player in the electrical equipment industry, has been trading in a range since reaching its all-time high (ATH) of Rs.1,485 in October 2021. While broader markets have experienced roaring highs, Havells has been consolidating within a more extensive range.
A closer look at the Heikin Ashi weekly chart of Havells reveals a bullish trend, prompting investors to question whether this could signal an impending range breakout.
Havells – Heikin Ashi Weekly Chart
The Heikin Ashi weekly chart is valuable for traders seeking to identify trends and potential trend reversals. Despite the stock’s consolidation since its ATH, the Heikin Ashi chart is signalling a bullish trend. This suggests that the stock has maintained a positive momentum despite the market’s fluctuation, raising the possibility of a breakout from its current range.
Havells/Nifty500 Ratio Chart
A deeper analysis involves examining the ratio chart of Havells to Nifty500. The slope of this ratio chart is crucial in understanding the stock’s performance relative to the broader market. Interestingly, the slope is turning northwards from a support trendline. This shift in direction indicates a potential strengthening of Havells compared to the overall market, providing further support for the hypothesis of a range breakout.
However, a cautious approach is warranted when considering the Relative Strength of Havells in comparison to selected Midcap stocks and Nifty500. The analysis indicates an “avoid” recommendation till the price rangebreakout as the broader markets are trading higher.
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