Go Air IPO puts spotlight on Wadia Group stocks. Here's a chart check

Except Bombay Dyeing and Manufacturing Company, all other Group stocks are seeing downside pressure

Shares of Go Air, the Wadia Group-controlled airline, may soon take flight at the bourses as the airline gears up for Rs 3,600 crore initial public offer (IPO). The budget airline has rebranded itself to become an "ultra-low-cost" airline and plans to raise funds amid the second wave of Covid-19 that has decimated travel demand. 

The move, analysts believe, may re-rate other Group firms as the airline won't be dependent on sister firms for line of credit. Wadia Group firms have been underperforming at the bourses for quite some time now. So far in the calendar year 2021, shares of Britannia Industries, Bombay Dyeing, and Bombay Burmah Trading Corporation have declined 2 per cent, 5 per cent, and 8 per cent, respectively as against a 6.7 per cent rally in the Nifty50 index. 

Given this, should you buy Group stocks? Here is the stocks look on charts:

Britannia Industries Limited (BRITANNIA)

Likely target: Rs 3,617 (if crosses 50-DMA and 100-DMA)

Upside potential: 1.77%

The FMCG major is currently attempting to cross the resistance of 50-days moving average (DMA) and 100-DMA, placed at Rs 3,554 and Rs 3,541-levels, respectively. A decisive move above these levels may trigger a rally towards Rs 3,617 levels, which is its 200-DMA. The overall trend is indicating a stable move above the next support of Rs 3,400 levels. The immediate support comes at Rs 3,450 mark. CLICK HERE FOR THE CHART

Bombay Dyeing and Manufacturing Company (BOMDYING)

Likely target: Rs 81 -Rs 83

Upside potential: 7.14% -  9.79%

With a "Double Bottom" formation on the daily chart, the stock has managed to breakout above the 200-DMA and has decidedly conquered 100-DMA level of Rs 74.70 levels. The overall trend remains bullish for the upcoming sessions. Going-forward, the stock needs to hold the support of Rs 70.90, which is its 200-DMA, to witness a rally towards Rs 81 and Rs 83-mark. The Moving Average Convergence Divergence (MACD) has crossed the zero line, reflecting a positive direction ahead. CLICK HERE FOR THE CHART

Bombay Burmah Trading Corporation Ltd (BBTC)

Likely target: Rs 1,350

Upside potential: 6.72%

The counter is witnessing stiff resistance at 200-DMA level, placed at Rs 1,265. Unless the stock conquers this level, the any upside move may meet with selling pressure. The immediate support comes at Rs 1,120 levels, which is the recent reversal mark, as per the daily chart. Upon crossing the resistance, the upside bias may see a rally towards Rs 1,350 levels. CLICK HERE FOR THE CHART

National Peroxide Ltd

Likely target: Rs 2,200 and Rs 2,150

Downside potential:  4.35% - 6.52%

After a brief consolidation in the range of Rs 2,250 to Rs 1,820 levels, the stock broke out resulting in a sharp rally towards Rs 2,900 levels. The current chart structure shows a formation similar to the "falling channel pattern" which inevitably shows weakness. If the stock breaks the support of Rs 2,300 levels, the downside may see a move towards Rs 2,200 and Rs 2,150 levels. CLICK HERE FOR THE CHART