Multibagger Stocks: Chart Check: Multibagger Returns Since Covid Low! The rally isn’t over at this auto component maker

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Jamna Auto Industries Ltd., the auto component and equipment manufacturer, has given multibagger returns from the low levels of covid in the last two years and the technical parameters show that the rally is not over yet.

The stock gained momentum after hitting a low of Rs 21 on 24 March 2020. It closed at Rs 128 on 6 July 2022 with a gain of over 500 per cent. The data shows that the stock has gained nearly 50 per cent last year. The momentum remains strong as the stock is moving in a higher high and higher low formation on the daily chart. It reached a record high of Rs 135.55 on 4 July 2022.

Experts suggest that short-term traders can enter the stock now or consider a fall of Rs 121-116-105 in the next six months with a target of Rs 200.

On the price front, Jamna Auto is trading above all important short and long term moving averages like 5, 10, 20, 50, 100 and 200-DMA, which is a positive sign for the bulls.

The Relative Strength Index or RSI is 73.1. An RSI above 70 is considered overbought. This means that the stock may see a decline. The MACD is above its center and the signal line is a bullish indicator, trendline data is shown.

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Jamna Auto 6 July (1)agencies

The share price rose from Rs 21 (March 2020) to Rs 124.9 (January 2022), creating a series of higher bottoms and higher tops. During the move, the stock was trading consistently above average, and Super Trend was in a positive mode.

“After booking marginal profit, and the stock corrected to Rs 95 in March 2022. A high bottom at 97.65, and the stock again started moving upwards. From Jan 22 to Jun 22, the stock has (95- 125) price range,” said Bharat Gala, President – Technical Research, Securities.

“A weekly bullish candle has been formed supported by volumes. KST, Vortex and Demand Index indicators have generated a buy signal. Probable target is Rs.200.”

Gala further said that if the share price corrects to the downside, the buy level is Rs 121-116–112-108-105. The stop loss seen in the trade is Rs.99.

(Disclaimer: Recommendations, suggestions, views and opinions given by experts are their own. They do not represent the views of The Economic Times)

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