Havells India shares see bullish breakout; where is stock headed?

Systematix Shares and Stocks (India) Ltd on Wednesday said Havells India Ltd shares are exhibiting strong bullish momentum on the daily chart, supported by a large bullish candlestick formation that resulted in a 3.25 per cent gain in the previous session. With Tuesday's gains, Havells India is up 10.77 per cent in one week, reflecting strong buying interest and improving market sentimen, it said..

Systematix said the stock has broken out of a double-bottom formation around the Rs 1,139 level. The breakout is supported by above-average trading volumes and strong price action, lending credibility to the positive setup. Moving average analysis, it said, also indicates that the short- to medium-term trend remains positive, suggesting continued strength in the prevailing bullish structure.

On the higher timeframe, the Havells India stock has gained 14.37 per cent so far this month and is trading above its previous monthly high, indicating strong underlying momentum and the potential for the uptrend to continue.

Additionally, the Relative Strength Index (RSI-14) is showing positive divergence on the daily chart, while the weekly chart reflects multiple positive divergences. These signals suggest underlying accumulation at lower levels and reinforce the constructive technical outlook.

Systematix said traders can consider accumulating the Havells India stock in the cash segment around Rs 1,154.90, with a strict stop loss at Rs 1,100 per share. It sees near-term upside targets of Rs 1,208 and Rs 1,254, respectively.

On Wednesday, Havells India shares were trading 0.62 per cent higher at Rs 1,166.70.