BALKRISHNA IN­DUS­TRIES

₹1130.45 CMP :

Flash News Investment - - DIWALI RECOMMENDATION -

Balkrishna In­dus­tries is in­volved in the 'off-high­way' tyres seg­ment that caters to agri­cul­tural and in­dus­trial seg­ments. The com­pany en­joys 5 per cent global mar­ket share in the USD 15 bil­lion OTR mar­ket, the com­pany’s man­age­ment aims to take this mar­ket share to 7.5-8 per cent in the com­ing two-three years. The com­pany’s plan for back­ward in­te­gra­tion with ramp­ing-up its car­bon black ca­pac­ity from 60,000 MT to 140,000 MT by FY20-21E would help it to re­duce costs and thereby im­prove its mar­gin go­ing for­ward. The low pen­e­tra­tion in the US mar­ket, along with ris­ing op­por­tu­nity in min­ing in­dus­try, are likely to aid rev­enue growth. The stock of Balkrishna In­dus­tries has been trad­ing with higher tops and mul­ti­ple sup­ports at Rs 1015 level. The stock has taken sup­port near Rs 1015 and has given a con­sis­tent up­side rally, hit­ting higher highs ev­ery time, form­ing an up­ward slop­ing rally. The stock hit all-time high at Rs 1467 level, formed a 'shoot­ing star' pat­tern and re­treated sharply more or less up to the mul­ti­ple sup­port at Rs 1015. Con­sid­er­ing the weekly time frame, the stock con­sol­i­dated for three con­sec­u­tive weeks af­ter tak­ing sup­port at 100-pe­riod EMA, fol­lowed by an at­tempt for a break­out in the re­cent week. On the daily time frame, the vol­umes are pick­ing up and os­cil­la­tors are head­ing to­wards the 55 level, sug­gest­ing mo­men­tum. Thereby, we see a bullish re­ver­sal in the stock.

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