"Thus, the stock can be bought at current level and on dips to Rs 556 with a stop loss below Rs 545 and a target of Rs 620 levels," says Ashish Chaturmohta of Sanctum Wealth Management.
Havells India hit a high of Rs 592 in the month of January this year and then witnessed a sharp fall to Rs 450 levels. Since then, the price has retraced more than 78.6 percent of the decline in a stepped manner.
For the last six-weeks price had been consolidation mode and taken support at rising trendline connecting lows of Rs 450 and Rs 484. The stock has seen a breakout from this range bound action with good price momentum and high volumes on Monday.
The price has also given breakout from Bollinger band with the expansion of band and closed above upper band suggesting upper is likely to trend in the direction of the breakout.
The daily MACD has given positive crossover on the daily chart above neutral level of zero suggesting consolidation phase is over and the uptrend is resuming.
Thus, the stock can be bought at current level and on dips to Rs 556 with a stop loss below Rs 545 and a target of Rs 620 levels.