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Published on 17/09/2020 12:56:36 PM | Source: ICICI Direct

Gladiator Stocks - Buy Automotive Axles Ltd For Target Rs. 870 - ICICI Direct

Posted in Broking Firm Views - Short Term Report| #Auto Ancillaries Sector #Trading Report #ICICI Direct #Automotive Axles Ltd

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Automotive Axles (AUTAXL): Long term falling supply line breakout augurs well for the next up move…

* The auto ancillary space is witnessing fresh momentum after the downtrend of the last two to three years as most stocks are witnessing a structural turnaround backed by accumulation pattern at the long term support zone, followed by breakout above key resistance area

* The share price of Automotive Axles has generated a resolute breakout above the falling supply line joining the highs since November 2018. This signals a structural turnaround and offers a fresh entry opportunity

* The 52 weeks EMA was acting as a major hurdle in the stock in the last two years. It has reversed its role and acted as a strong support during the recent breather (currently at | 684) as can be seen in the adjacent chart highlighting strength

* The sharp price rally in August was supported by strong volume. Highest monthly volume in the last two years highlights accumulation at key support area o We expect the stock to continue its positive momentum and head towards | 870 levels in the coming months as it is the 80% retracement of the previous major decline of September 2019 to March 2020 (| 1019-336) around | 870 levels

 

Buy Automotive Axles Ltd @ 725.00-750.00 TGT 870 SL 673

 

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