Berger Paints, Asian Paints at record high; technicals suggest more upside

Paint-related stocks have done well at the bourses over the past few sessions. Asian Paints is scheduled to announce its July-September quarter (Q2FY21) results on October 22, 2020. The board will also consider the payment of interim dividend, if any, for the financial year ending March 31, 2021.

In the past three months, Asian Paints (up 22 per cent) and Berger Paints (up 19 per cent) have outpaced the benchmark index, which gained 8 per cent during the same period. READ ABOUT IT HERE

Will the gains sustain? Here's what charts suggest.

ASIAN PAINTS LTD (ASIANPAINT): After hitting a new lifetime high of Rs 2,109.75, this counter is set to rise further towards Rs 2,300 levels. The up move is likely to be spurred by the strong underneath momentum, with the Relative Strength Index (RSI) breaking out of Inverse Head and Shoulder on the daily chart. The immediate support comes at Rs 2,040 levels and till the time the stock defends Rs 1,980 levels on a closing basis, the overall trend may rally towards Rs 2,500 levels. CLICK HERE FOR THE CHART
 
PIDILITE INDUSTRIES LTD (PIDILITIND): The formation of a “Golden Cross” on the daily chart suggests that the stock is ready to fly higher on the breakout above Rs 1,520 levels. The immediate trend of the last four sessions reflects a sideways movement. This is likely to result in the breakout on the upside towards Rs 1,500, as the RSI is holding a firm momentum above the support of Rs 1,440 levels. Even the Ichimoku cloud is indicating a steady upside with the cloud gradually rising upward. CLICK HERE FOR THE CHART
 
BERGER PAINTS INDIA (BERGEPAINT): This stock's weekly chart clearly indicates a “Rising channel pattern” with an immediate trend in the direction of Rs 622-mark. Both the indicators, RSI and MACD, are trading with positive crossovers with the price trajectory not showing any signs of reversal, yet. The closing basis support comes at Rs 598 levels. CLICK HERE FOR THE CHART