Havells India: Poised for significant uptrend

Havells India Ltd. is a leading developer of electrical and power distribution equipment. Established in 1971 by Qimat Rai Gupta, the company operates through various segments including switchgear, Cables, Lighting and Fixtures, Electrical Consumer Durables, and Lloyd Consumer. Headquartered in Noida, India, Havells has established itself as a prominent player in the electrical goods sector.

Technical Analysis

In early October 2021, Havells began a retracement phase after reaching a high of Rs 1,504.85, leading to a consolidation period lasting over 2 years. During this phase, the stock found solid support around Rs 1,030, a key Fibonacci support level placed just above the 200-week moving average (WMA). This completion of a correction wave structure paved the way for the next impulse phase.

The recent pivotal point in Havells’ journey is the emergence of a significant breakout trendline, connecting the high point of October 18, 2021, with the peak of September 11, 2023. This technical continuation pattern unfolded over 2 years and 4 months, suggesting a potential shift in the narrative.

Stock Performance

In the current weekly trading session, Havells India Shares witnessed a surge of more than 2.77%, accompanied by above-average trading volumes. Today’s trading session saw a 3.17% rally, reaching a day high of Rs 1,482, surpassing the breakout trendline to close at Rs 1,469.15 with substantial volumes of 2.86 million shares. This trading action indicates a potential continuation of the trend, with a weekly closing above the breakout trendline providing the final confirmation.

Future Outlook

With a potential target set at Rs 1,970, representing a gain of more than 35% from the breakout threshold, Havells presents an opportunity for swing traders and investors with a favourable risk-to-reward ratio. The company’s trajectory offers a promising outlook, brimming with potential for further upward gains.

As Havells breaks free from its continuation pattern, investors are advised to closely monitor its performance. The exciting prospects it presents in the evolving landscape make Havells India Ltd. a stock to watch for those recognising the potential for significant growth in the Consumer Durable sector.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.