The stock recently broke out from a rectangle pattern earlier in November on the weekly charts which helped Escort share price to touch fresh highs. Short-term traders who missed the rally can look at buying the stock on dips for a target of Rs 3,000 in the next 6 months, suggest experts.
iStock
Escorts Kubota, part of the tractor industry, touched fresh record highs in November 2022 but the rally may not be over yet, although some profit taking could happen as the stock is trading near overbought levels.
Momentum helped the stock with a market capitalisation of nearly Rs 30,000 crore to hit a record high of Rs 2,303 on 28 November 2022. The stock is up over 13% in a month and over 16% in the past 3 months.
The stock recently broke out from a rectangle pattern earlier in November on the weekly charts which helped Escort share price to touch fresh highs.
Short-term traders who missed the rally can look at buying the stock on dips for a target of Rs 3,000 in the next 6 months, suggest experts.
In terms of price action, the stock price is trading above most of the crucial short- and long-term moving averages of 5,10,30,50,100 and 200-DMA which is a positive sign for the bulls.
The Relative Strength Index (RSI) is at 70.2. RSI above 70 is considered overbought. This implies that stock may show pullback. MACD is above its center and signal line, this is a bullish indicator, Trendlyne data showed.
ET CONTRIBUTORS
Escorts stock price started its up move from Rs 1,100 (May 2021). A higher bottom has formed around Rs 1,128 (back in July 2021) and the stock made a high of Rs 1,927 (December 2021) supported by volumes.
After hitting the high the stock underwent a technical correction in the form of profit booking and the stock made a low of Rs 1,400 in July 2022.
After hitting a low back in July, Escorts attracted buying interest which helped the stock to register fresh highs above Rs 2,100 in September 2022.
“Escorts gave a trendline breakouts (Connecting December 2021-November 2022) and a rectangle pattern breakout making a new high above Rs 2,300,” Bharat Gala, President - Technical Research, Ventura Securities, said.
“The Aroon Up/Down, ADX, KST Indicator suggest a possible up move. The possible targets are Rs 3,000,” he added.
“If the stock price corrects downwards the buy levels are Rs 2,205-2,148-2,100-2,059-2,029. Stop loss to be observed in the trade is Rs 1,950,” recommends Gala.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
iStock
ET CONTRIBUTORS
Get Unlimited Access to The Economic Times
