Munjal Showa Ltd is the pioneering global leaders in the manufacture of
shock absorbers and struts for leading two-wheelers and four-wheelers. This
company is one of the largest suppliers of shock absorbers to major auto giants
in India, Japan, Germany, US, UK etc. Munjal Showa is
likely to show better price performance in near term supported by good
fundamentals and technical breakout.
On chart, stock prices are volatile.
The stock hit 52-weeks’ high of Rs. 212 in January 2016, then price revered to
52 weeks’ low of Rs. 150.05, in the month of February 2016, down by 29.22 percent
from its 52-weeks’ high. Currently, stock price is trading at Rs. 198.50. The
stock price witnessed 32.28 percent rise in the last seven months, from the
52-week low. We feel that there is still some steam left and the rally is
likely to continue.
Technically on a different time scale of daily & weekly chart stock
price is making higher tops and higher bottoms pattern. Tracking Bollinger Band
front price of. Rs. 198.50 is ridding the ‘Upper Bollinger Band’ and also the
bands are widening, indicate ongoing positivity will
continue in the stock price.
On a daily chart a
symmetrical triangle or continuation pattern and stock price of Rs. 198.50 has
given a breakout above the upper trend line of the pattern of. Rs.185, with
sharp increase in volumes, indicate rally will continue for the multi month
towards Rs. 250 level, which is 25 percent.
The positive crossover spotted in moving average convergence divergence or MACD (a momentum and trend indicator) also suggest the formation of the next big move up in the stock over the next few months. RSI, which indicates inherent strength, it has more room upside, which adds further positivity to the index. Most of the oscillator based indicators also point towards the bullish view of the stock price.
The positive crossover spotted in moving average convergence divergence or MACD (a momentum and trend indicator) also suggest the formation of the next big move up in the stock over the next few months. RSI, which indicates inherent strength, it has more room upside, which adds further positivity to the index. Most of the oscillator based indicators also point towards the bullish view of the stock price.
Looking towards the chart
pattern and study i.e. Bollinger Band, RSI and MACD, we believe stock price may
extend its rally towards Rs. 249/275 levels, whereas Rs.175 will act as a
strong support level, which would be on closing basis.
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