Technical Analysis of Indian Equities by Nooresh

Sona Koyo Steering and Pricol – Auto Ancillary Charts

 

A lot of Auto Ancillary stocks have done amazing moves but fundamentally one can continue to believe they are cyclicals. At one point of time after a drop of 60-70% post 2008 a few had come down to terribly low valuations and almost on verge of bankruptcy.

But some have come of strong in the current bull market. Many of them are up 4-5 times from 2013-2014 levels.

I would not like to go into a debate as to how Auto Ancillaries have no pricing power etc but i believe all manufacturing business in India have started looking interesting and could surprise in coming years. Although have not been able to participate much apart from Munjal Showa which was a good trade, but i still think one needs to look at some of these names from a fresh perspective.

Similary have been very bullish on #Textiles as a sector for the last 1 year. Will write about in another post.

A couple of interesting charts.

Sona Koyo

SONA KOYO STEERING

  • The stock gave a channel breakout at 56-58.
  • Post that it consolidated around the previous all time highs of 63-65.
  • TOday the stock has broken out with strong volumes.
  • Start of a new trend it seems.
  • Just an observation as to how one can trade smallcaps on technicals.
  • Can you see the increase in volumes in July.
PRICOL

PRICOL

  • Triangle breakout above 36-38.
  • Good volumes seen in last 2 weeks.
  • Today the stock has broken out with decent volumes.

#Disclosure - Sona Koyo Steering ( 56-58)  and Pricol ( 38/30 ) have been recommended in Technical Traders Club and Big Value 2.0 . Please do your own research and we have our bias. Do read the disclaimer.

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Nooresh Merani

Securities covered above:: Sona Koyo Steering and Pricol

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Article by Nooresh Merani

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