Buy Bata India; target of Rs 1300: Way2Wealth

Way2Wealth has advised to buy Bata India near Rs 1045 with a stop loss of Rs 930 for the target price of Rs 1300, in its research report dated June 22, 2015.

July 31, 2015 / 17:24 IST

26 Aug, 2025 12:21

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Way2Wealth's report on Bata India

"Exactly five months back on January 23, 2015 - BATAINDIA was trading at its all-time high of 1496 and now it’s lingering almost 30% lower near 1050 mark. During this process, the counter kept on inching lower towards 940 odd levels and thus eroded the prices significantly. Since the fall was a steep one the prices went under extreme oversold condition in most of the time frames. As a result, the counter found a respectable support exactly near 930 mark which was the elite 70.70% Fibonacci retracement level of the entire move from 687 to 1496. Later on, BATAINDIA started its roadmap to recovery and is once again above the 1000 levels."

"At this point in time, on the monthly chart we are observing that the stock is sustaining above the rising trend line on closing basis since very long time. In addition, the MACD histogram on the weekly chart is turning bullish after a series of negative bars. Also, the placement of momentum oscillators and moving averages are signaling towards a possibility of strong bounce from the current levels. Meanwhile, the stock has also started making ‘Higher Highs & Higher Lows’ on the daily chart. All the discussed technical evidences and price behavior has fortified our belief that the short term bottom is in place for BATAINDIA. Therefore, we are of the opinion that the stock has many rationales to show a decent appreciation in prices going further. We advise traders to go long in the BATAINDIA near 1045 levels for an upside target of 1300 in coming months", says Way2Wealth research report.

Investment Strategy:Buy near 1045 with a stop loss of 930 for a Target of 1300.Risk/return ratio: 1:2.2

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