CMP: 304
Either Sell below 298 or on rise around 310-315:
TGT: 277-260-250-242 (1-3M)
TSL>323
Note: Consecutive closing above 323 for any reason, Voltas may further rally to 331-348*-360 & 380 in the near term.
Voltas rallied by over 27% since last Sep'15 on the back of festival season sale, expected 7-th Pay Comm induced liquidity in the low/medium ticket consumer durable goods like AC, hope for GST etc. Overall, the stock outperformed the broader market quite well.
Looking ahead, some analysts are concerned over likely intensified competition in AC market and that can lead to margin squeeze and some loss of market share for Voltas.
In any way, Voltas is a good company for portfolio investment having a great brand & strong distribution network. But recent price action suggests that 310-315 is a strong supply zone and technically its has to sustain above this zone for further rally up to 360-380 zone in the mid to long term. On the downside, 298 zone is now acting as a decent support and sustain below that it can again fall towards 277-250 area. Considering the risk reward ratio, thus buy on dips around this level may be good for portfolio investment.
Analytical Charts:
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