Chart Check: After 30% rally in 3 months, this stock hit a fresh 52-week high; time to buy or book profits?

Exide Industries, part of the auto component maker space, hit a fresh 52-week high in June 2022 and the recent breakout from a Double Bottom pattern suggests that the rally in the stock price may not be over yet.

Short-term traders can look to buy the stock now or on dips for a possible target of 280 levels in the next 3-4 weeks, suggest experts.

The stock hit a fresh 52-week high of Rs 235 on 22nd June 2023. It rose from Rs 177 as on 23 March 2023 to Rs 232 recorded on 23rd June 2023 which translates into an upside of over 30%.


The stock gave a breakout from a swing high of Rs 221 recorded on 24th February 2021 in June 2023. The stock closed at Rs 229 for the week ending 23rd June 2023.

The recent swing high has opened the room for the stock to head towards Rs 280 levels in the short term. The recent price action has put the stock in overbought zones; hence, some profit bookings could be on the cards.

The daily Relative Strength Index (RSI) is at 76.9. RSI above 70 is considered overbought. This implies that stock may show pullback, Trendlyne data showed. MACD is above its center and signal line, this is a bullish indicator.

In terms of price action, the stock is trading well above most of the crucial short and long-term moving averages such as 5,10,30,50,100 and 200-DMA on the daily charts.

The stock of Exide Industries has demonstrated remarkable resilience, consistently trading above the Rs 217 level, which had previously acted as a significant resistance since February 2019.

“This sustained performance from Exide Industries stock price reflects a strong bullish sentiment in the market. The recent breakout of the Double Bottom pattern signifies the initiation of an upward trend,” Omkar Patil, Technical Research Associate at GEPL Capital, said.

“This breakout pattern is a positive indication, suggesting potential further up move in the stock's value. Furthermore, there has been a notable increase in trading volumes during the upward movement, indicating a growing interest and long built-up positions among market participants,” he said.

Additionally, the RSI has also experienced a breakout, reflecting the rising momentum in the stock prices. This surge in RSI further supports the bullish sentiment surrounding Exide Industries.

“It is anticipated that the stock prices will continue to ascend, potentially reaching the Rs 285 level. It is advisable to set a strict stop loss at Rs 210, based on a closing basis,” recommended Patil.

(Disclaimer: Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of the Economic Times)