Britannia, Bombay Dyeing: Can Jeh Wadia's exit drag stocks of group cos?

Britannia Industries shares have broken out on the upside and are anticipated to continue the positive rally. Here's what technical charts suggest about the road ahead for listed Wadia Group stocks

Shares of Bombay Burmah Trading Corporation and Britannia Industries, the listed companies of Wadia group, were seen trading higher by 3 per cent and 2 per cent, respectively even as Jehangir Wadia quit from the boards of directors.

Jehangir, 48, in March resigned as managing director of his family-controlled airline of Go Airlines (rebranded as Go First). A month later, Bombay Dyeing and Manufacturing Company said Jehangir had stepped down as its managing director. Britannia’s latest annual report last week said Jehangir (or Jeh in media reports) did not offer himself for reappointment to the board. CLICK HERE FOR A RELATED REPORT

Will his exit hurt the outlook of listed Wadia Group firms? Here's what technical charts suggest:

Britannia Industries Limited (BRITANNIA)

Likely target: Rs 4,000 and Rs 4,200

Upside potential: 3.50% to 9%

After witnessing minor selling pressure in the range of Rs 3,700 to Rs 3,600 levels, a breakout on the upside is signalling a positive movement for a few sessions, with a rally towards Rs 4,000 and Rs 4,200 levels. The green close candles possess strong volumes, further suggesting the hands of bullish participants, as per the weekly time frame. The closing basis support remains at Rs 3,700 levels. CLICK HERE FOR THE CHART

 
Bombay Dyeing and Manufacturing Company (BOMDYING)
Likely target: Rs 100 and Rs 115
Upside potential:  16% to 33%

Despite trading below the 200-weekly moving average (WMA), placed at Rs 124 levels, the stock is continuously making efforts to trade on the higher side of the positive momentum on a year-to-date basis. Going forward, as long as the support of Rs 71 is held on a closing basis, the upside bias may re-gain positive sentiment towards Rs 100 and Rs 115 levels. CLICK HERE FOR THE CHART
 
Bombay Burmah Trading Corporation Ltd (BBTC)
Outlook: Need to conquer 200-DMA

While Bombay Burmah Trading Corporation managed to break out on the upside in May, it failed to gain further momentum and breached the support of 200-days moving average (DMA) around Rs 1,250 levels. This weakness led it to break the earlier reversal mark of Rs 1,101. The current price scenario indicates an attempt to conquer the 200-DMA but if the stock continues to trade below the significant moving average, the weakness and negative sentiment may anytime engulf the upside bias, suggests the daily chart. CLICK HERE FOR THE CHART

 
National Peroxide Ltd
Outlook: As long as Rs 2,000 is held, the positive bias may prevail

The current price levels are hovering around 200-DMA placed at Rs 2,162. If the stock breaks the support of Rs 2,000 levels, the bearish sentiment may hammer the stock towards Rs 1,800 levels. On the flip side, any move above the resistance of Rs 2,400 level may spark a rally towards Rs 2,600 and Rs 2,700 levels. CLICK HERE FOR THE CHART