multibagger stock: Chart Check: Multibagger returns since Covid lows! The rally is not over in this auto component maker

Jamna Auto Industries Ltd, auto part and gear makers, has given multibagger returns from Covid lows within the final two years and technical parameters counsel that the rally is just not over but.

The inventory rallied after hitting a low of Rs 21 on 24 March 2020. It closed at Rs 128 on 6 July 2022, an upside of over 500 per cent. The inventory jumped by about 50 per cent within the final 12 months, information confirmed. The momentum stays sturdy because the inventory is transferring in a better excessive and better low formation on the day by day charts. It hit a file excessive of Rs 135.55 on 4 July 2022.

Quick-term merchants can have a look at coming into the inventory now or on dips in the direction of Rs 121-116-105 for a goal nearer to Rs 200 within the subsequent six months, counsel specialists.

On the value entrance, Jamna Auto is buying and selling above all of the essential quick and long-term transferring averages similar to 5, 10, 20, 50, 100, and 200-DMA, which is a constructive signal for the bulls.

The Relative Energy Index or the RSI is 73.1. RSI above 70 is taken into account overbought. This suggests that the inventory could present a pullback. MACD is above its heart and sign Line, a bullish indicator, Trendlyne information confirmed.

The inventory worth began its up transfer from Rs 21 (March 2020) to 124.9 (Jan 2022), making a sequence of upper bottoms and better tops. Through the transfer, the inventory constantly traded above averages, and Tremendous Development was in constructive mode.

“Slight revenue reserving adopted, and the inventory corrected to Rs 95 in March 2022. The next backside at 97.65 adopted, and the inventory began its up transfer once more. From January 22 to June 22, the inventory traded in (Rs 95-125) worth vary,” stated Bharat Gala, President – Technical Analysis, Securities.

“A Weekly Bullish candle, supported by volumes, has been fashioned. The KST, Vortex & Demand Index Indicators have generated a purchase sign. The potential targets are Rs 200,” he added.

Gala additional added that if the inventory worth corrects downwards, the purchase ranges are Rs 121-116–112-108-105. A cease loss to be noticed within the commerce is Rs 99.

(Disclaimer: Suggestions, strategies, views, and opinions given by the specialists are their very own. These don’t characterize the views of Financial Occasions)