Chart Idea – Bata India
In the previous trading session, the stock has formed a piercing pattern on the chart. We will see an upside reversal in this stock from these levels in coming days.
Bata India Limited is engaged in the business of manufacturing and trading of footwear and accessories, through its retail and wholesale network and development of real estate. The Company’s segments include Footwear & Accessories, and Surplus Property Development.
The Footwear & Accessories segment is engaged in the business of manufacturing and trading of footwear and accessories items through its retail and wholesale network. It also offers accessories for women, including handbags, belts, clutches, and scarves. And for men, including shoe care products, wallets, and belts.
Bata India’s brands include Bata, Bata Comfit, Bubblegummers, Hush Puppies, Power, Weinbrenner, and Naturalizer. It has a retail network of over 1,200 stores. Besides this it also operates a non-retail distribution network through its urban wholesale division and caters to various customers through approximately 30,000 dealers.
The company has reported its Q4 financial numbers, which are lower on both QOQ and YOY due to Coronavirus pandemic all the stores remained closed from two months. From June 1 after the unlocking of the economy, the sales may gear up which may boost the revenue of the company.
The stock has formed a piercing pattern on Friday trading session which indicates an upside reversal on the chart. Stock is taking the support of 38 percent retracement of its total upside rally after bottoming out.
The relative strength indicator (RSI) gives a bullish indication with a supportive volume spurt on the chart. As we can see, the stock is currently trading in a buying zone according to the Fibonacci channel study and taking the support of a super trend on a daily chart.
Traders can buy the stock around 1340 levels. We will see an upside movement in this stock till 1500—1550 +++ levels in the coming days.
Support and stop-loss below 1280 levels on a closing basis.
Trade with levels only.
We have booked bumper profit in our previous chart idea of Axis Bank. Click here to read the same.