Maha govt's new EV policy can spark up to 25% upside in these stocks

Shares of Motherson Sumi, Jay Bharat Maruti and Bharat Gears have surged over 50 per cent so far this year and continue to see positive interest from market players

The Maharashtra government on Tuesday unveiled its electric vehicle (EV) policy, wherein it announced that EVs in the state will attract financial incentives ranging from Rs 10,000 to Rs 20 lakh. The state hopes EVs will make up 10 per cent of all new vehicle registrations by 2025. The various incentives are for two-wheels, electric cars and SUVs. READ HERE

This development may foster price action in related stocks which have seen a mixed-bag performance in the current year.

Shares of Amara Raja Batteries have dropped 20 per cent on a year-to-date (YTD) basis while those of Exide Industries have also put up a muted show. On the flip side, shares of Motherson Sumi, Jay Bharat Maruti and Bharat Gears have surged over 50 per cent and continue to witness positive demand from market players.

Here's a look at what tech charts are signalling for these names:

Amara Raja Batteries Limited (AMARAJABAT)

Likely target: Rs 758

Upside potential: 2.50%

After a negative crossover of 50-days moving average (DMA), 100-DMA with 200-DMA, the counter has lost upside intent. The 50-DMA is currently placed at Rs 758, its immediate resistance zone. While the stock is indicating stability above the recent reversal mark of Rs 732, the positive bias is yet to regain upward momentum. CLICK HERE FOR THE CHART

Exide Industries Limited (EXIDEIND)

Likely target: Rs 203 to Rs 210 (needs to breakout above Rs 190)

Upside potential: 6.50% to 10.50%

The stock is struggling to regain momentum around 200-DMA, which is currently placed at Rs 185.10 levels, daily charts show. The next immediate resistance is at Rs 187-mark, which is its 50-DMA. The stock needs to decisively cross Rs 190 levels to breakout on the upside, following which a rally towards Rs 203 and Rs 210 levels cannot be ruled out. The immediate support stays at Rs 180 levels. CLICK HERE FOR THE CHART

Motherson Sumi Systems Limited (MOTHERSUMI)

Likely target: Rs 260 and Rs 275

Upside potential: 7% and 13%

As long as the stock holds the momentum above the 100-DMA, which is placed at crucial support of Rs 227, the upside bias is expected to scale higher highs of Rs 260 and Rs 275. The Moving Average Convergence Divergence (MACD) is crossing the zero line upward, suggestive of the positive direction. This could result in an upside in the short term. Going forward, any surge in volumes may show the interest of market participants that are currently falling short. CLICK HERE FOR THE CHART

Jay Bharat Maruti Ltd (JAYBARMARU)

Likely target: Rs 260 and Rs 270

Upside potential: 6% and 10%

The trendline breakout of the “Flag Channel” reflects a firm positive upside for the counter in the short term. A breakout above Rs 245 may aggravate investor interest and lead to a rally towards Rs 260 and Rs 270 levels, suggests weekly chart. Although the Relative Strength Index (RSI) is trading in the overbought category, the upward price action is not getting weak. CLICK HERE FOR THE CHART

Rico Auto Industries Limited (RICOAUTO)      

   

Likely target: Rs 56 and Rs 60 ( breakout above Rs 52)

Upside potential: 7% and 16%

A decisive breakout above Rs 52 levels may see a rally towards Rs 56 and Rs 60, charts show. Further, a surge in volumes may add to the swiftness of the rally. The RSI's move above resistance of 60 value also showcases positive strength on the upside. The immediate support for the stock comes at Rs 48 levels. CLICK HERE FOR THE CHART

               

Gabriel India Limited (GABRIEL)

Likely target: Rs 160 and Rs 175

Upside potential: 14% and 25%

A decisive close above Rs 140 level can give a two-year breakout in this stock to Rs 160 and Rs 175 levels, as per the weekly chart. The surge in volumes in recent sessions shows increased investor interest. The immediate support comes at Rs 125 and Rs 120 levels. CLICK HERE FOR THE CHART

Bharat Gears Ltd (BHARATGEAR)

Likely target: 145 and Rs 155

Upside potential: 15% and 24%

The stock has broken out above Rs 115 levels, suggesting further upside towards Rs 145 and Rs 155 levels in the short term. As long as the counter trades above the 50-DMA, placed at Rs 101 levels, the medium-term outlook stays highly optimistic, as per the daily chart. The surge in volumes suggests a firm positive interest of the market participants. CLICK HERE FOR THE CHART