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Buy Berger Paints, may head towards Rs 314: Dharmesh Shah

Rakesh Patil
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Asian Paints to invest Rs 4,000-cr this fiscal in largest capacity ramp-up

The city-headquartered company is setting up plant with a 5 lakh KL per annum capacity at Visakhapatnam at an investment of Rs 1,785 crore and a 6 lakh KL plant at Mysuru pumping in Rs 2,300 crore.

Dharmesh Shah

The share price of Berger Paints remains in an uptrend forming a higher peak and higher troughs. It has witnessed a strong rebounded on last Friday as it took support at the 38.2% retracement of previous up move (232- 287) placed at Rs 267 levels signalling positive bias.

The up move was accompanied by a strong volume of more than 7x the 200 days average volume of 7 lakh share per day highlighting larger participation at support level thus offering a fresh entry opportunity to ride the next up move in the stock.

Among oscillators, the daily 14 periods RSI has recently generated a bullish crossover indicating positive bias in short-term.

We expect the stock to maintain positive bias and head towards Rs 314 levels being price equality to the previous rally from Rs 238 to Rs 287 added to the recent trough of Rs 265 project upside towards Rs 314 levels.

Disclaimer: The author is Head Technical, AVP at ICICI Direct.com Research. The views and investment tips expressed by investment experts on Moneycontrol.com are his own and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.