Amara Raja, Indo National: Stocks of battery makers that can jump up to 25%

RIL has forayed into Lithium-ion battery biz through stake buy in US company. Here's how stocks of traditional battery makers look on the technical charts

Amara Raja Batteries Limited (AMARAJABAT)
Likely target: Rs 774 and Rs 840
Upside potential:   4.50% to 12%

To breakout on the upside, the counter needs to firmly close above 50-days moving average (DMA), which is currently placed at Rs 740 levels. Only upon conquering the resistance, the stock may see head towards Rs 774 and then Rs 840 levels, which are its 100-DMA and 200-DMA, respectively. The current trend suggests that the scrip is making an effort to cross the 50-DMA. There is support at Rs 710 levels, which also is the recent reversal mark for the counter. Relative Strength Index (RSI) has made a double bottom formation, signalling strength.  CLICK HERE FOR THE CHART

 

Exide Industries Limited (EXIDEIND)
Outlook: Downside bias, but RSI trades in oversold territory, recovery may happen

The counter is losing momentum as it has formed a “Death Cross” ( 200-DMA converging 50-DMA), as per the daily chart. However, if the RSI manages to jump above the oversold territory with strong positive close, then the downside bias may get arrested and the stock may consolidate for a while before it regains strength. The next immediate support comes at Rs 150 levels. CLICK HERE FOR THE CHART

HBL Power Systems Limited (HBLPOWER)
Likely target: Rs 55
Upside potential:   12%

Though, the counter has broken its 50-DMA, as long as the support of Rs 40 level is held, which is its 100-DMA, the positive bias will remain intact. The 50-DMA and 100-DMA are placed at Rs 49.10 and Rs 42.50 levels, respectively. Going forward, a decisive close above 50-DMA may trigger a rally towards Rs 55 levels, as per the daily chart. The weekly chart indicates a “Golden Cross “breakout above Rs 58 levels. CLICK HERE FOR THE CHART

High Energy Batteries (India) Ltd
Likely target: Rs 2,200 
Upside potential:   10%

Since June 2021, High Energy Batteries has gained over 300 per cent to Rs 2,921 levels with the stock hitting the upper circuit frequently. That said, there was some profit booking given the sharp rally and the scrip corrected towards the Rs 1,900 levels.  However, as long as the 50-days moving average (DMA) is protected, which is currently trading at Rs 1,701, the medium-term outlook is intact and the stock is expected to show positive reversal and head towards Rs 2,200  levels. CLICK HERE FOR THE CHART
 
Indo National Ltd  (NIPPOBATRY)

Likely target: Rs 1,200 and Rs 1,300
Upside potential:   16% to 25%

The formation of a “Golden Cross” on the weekly chart suggests a positive outlook from a medium-term perspective. The overall trend suggests that the stock is heading towards Rs 1,500 levels going ahead. That said, a bout of profit booking in the immediate term cannot be ruled out, which has halted the stock's run near the 50-DMA placed at Rs 1,023 levels. As long as the medium-term support of Rs 900 levels is held, the reversal may deliver unexpected returns in the near future and the counter can even jump as much as 25 per cent from the current levels. CLICK HERE FOR THE CHART