Mithil Pradhan of Violet Arc Global Managers told CNBC-TV18, "What has happened is auto stocks if you have noticed in the last one week or so when the correction was going on in Nifty, there was barely any downside seen in the auto stocks in general. There is a reverse divergence in the BSE auto index and it is offering an upside of about 10 percent from current levels. So, that is the reason why I have chosen Exide Industries as a recommendation.”
"Exide has broken out of a five year consolidation. There was a sideways pattern which was going on and this particular breakout is into a virgin territory completely. If you look at the ratio chart of Nifty versus Exide, you will see that there is a breakout even in the performance chart. What I mean to say is that Exide will be in a position to outperform the market from here and I would recommend Exide as a long position from short-term as well as medium-term. The short-term target is about Rs 208-210 on the upside and we can keep a stoploss just below Rs 180," he added.
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