Chart Check: Double bottom pattern makes this battery company an attractive buy-on-dips pick

Exide Industries, part of the battery space, is down by over 11% from its November 2021 highs but a bounce back seen from a double bottom formation on quarterly charts suggests that fresh highs could be in the offing.

Short-term traders can use dips, if any, to buy the stock for a possible target above 250 in the next 2-3 quarters, suggest experts.

The stock rallied more than 5% in a week and over 8% in a 3-month time.

The stock of the battery maker has been in a steady uptrend after hitting a low of Rs 130 on 20 June 2022. The stock has rallied more than 26% since then.

The stock also formed a double bottom formation around 120-130 levels on the quarterly charts. It retested this level once in April and then in July 2022.

On the price front, the stock price is trading above 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 or the RSI is 62.2. RSI below 30 is considered oversold and above 70 is considered overbought, Trendlyne data showed.

“Exide Industries has seen a double bottom formation on quarterly charts @ Rs 130 levels post back-to-back six quarters of correction (31.03.2021 – 30.06.2022),” Sujit Deodhar, Head - Technical Analyst, Wellworth Share & Stock Broking Ltd., said.

“The stock has picked up momentum last quarter with a bullish candlestick bar. On daily charts, the long-term moving averages (50,100 & 200 SMA) have formed a bunch, indicating that the stock is ready for a big move,” he added.

“Technical indicator Stochastic exhibits a fresh BUY signal supporting the bullish stance. Exide Industries qualifies for a BUY at current levels of 165 & on dips towards 150 levels with stop loss to be placed below 142 levels on a daily close basis,” recommends Deodhar.

“Traders can buy the stock for a decent upside target projected at 260 levels with a holding period of the next 2-3 quarters,” he added.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)