Amara Raja Batteries is looking very bullish!

Sep 26, 2020

Analysis is given on the charts but I wanted to add another point. Volume expansion has been more than 2x the 100 day moving average of volume, suggesting that some big player is accumulating the stock and pushing the price up. As midcaps have become very attractive due to their returns as well as the SEBI norms regarding mutual funds, strong midcap stocks such as Amara Raja Batteries, Voltas, Deepak Nitrite and others, will be the ones which can rally 50-100% from the CMP. Amara Raja Batteries is also fundamentally exceptional stock and I am betting on its future prospects(supplying batteries to electric vehicle manufacturers). The day India improves its EV infrastructure is the day stocks like Amara Raja Batteries will flourish. Battery makers will remain in demand for more than a century as EVs require batteries, hydrogen-powered cars also require batteries to store the energy and hence such stocks will be very attractive. Amara Raja Batteries' sales were also not affected due to COVID. Amara Raja Batteries has better ROCE and ROE than its rivals, which is a beneficial thing in the long run as it would be able to use the cash in an efficient manner. Batteries are also used to store the energy collected through windmills, solar panels, hydropower, and others and these renewable energy sources are the future. Hence, the demand for batteries isn't going to slow in the longer term(1-2 centuries) and Amara Raja Batteries has the resources to adapt to any new opportunities coming its way. Always go for stocks whose price structure is strong( HH-HL structure, volume expansion with price moving higher) and are also fundamentally strong( Have an edge in their business, positive future prospects and other aspects).

I am not a SEBI registered investment advisor and hence do not follow my analysis blindly.
Be aware of what you are trading and the risk associated with it.
Stock market is risky and you can lose a lot of your capital.
Be wise and trade carefully!
Grateful!🙏

Sep 28, 2020

Note

Price has acted as I thought it would. First sign of a great trade. Once 786 is broken decisively, we can expect price to move higher with momentum. No specific targets but psychological levels such as 800 and 850 can be the levels at which scaling out can be carried.

Sep 30, 2020

Note

Price has already moved more than 3.5% from the entry price. Today's session had significantly less volume than any previous day and the price moved a little over 1 %. A sign of concern but let's see how it progresses.