Exide Industries and Hero MotoCorp have shown bullish chart patterns, according to the analyst.
SEBI-registered analyst Dhruv Tuli has flagged two stocks with breakout potential. He is bullish on Exide Industries and Hero Motocorp, driven by their strong technical charts.
Let’s take a look at his recommendations in detail:
Breakout Watch: Exide Industries
Exide has given a breakout above the falling trendline at ₹380 and has been holding strong above this level for a couple of months.
On the technical charts, Dhruv Tuli noted that the breakout from the long-term falling trendline was similar to the 2022 breakout at ₹170. The stock was holding support at the 200-day and 100-day Exponential Moving Average (EMA). The Relative Strength Index (RSI) remains in a neutral zone, indicating room for upward momentum.
Volumes show that accumulation is visible in the stock, and Tuli believes that a rally may emerge as volume picks up
He recommended an entry above ₹390–400 (on volume confirmation), with a stop loss at ₹350, for a short-term target of ₹440–450. Positional targets would be higher, he added.
Tuli concluded that Exide’s setup looked promising for a fresh rally if momentum sustained.
Breakout Watch: Hero Motocorp
Another solid pick in the auto space is Hero Moto, which has given a breakout and retest of the 2023 trendline breakout, with a visible inverse Head & Shoulders pattern forming on the daily chart. These are strong bullish signals, according to Tuli.
The stock is holding firmly above 100 & 200 EMA. And Tuli believes that the auto sector is likely to outperform globally post-EV rally.
He recommended a buy between ₹4,500 – ₹4,400, with a stop loss at ₹4,100, for a target price of ₹5,000, ₹5,200, and ₹5,500.
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