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Ltd, part of the Nifty MNC index, which rose 63 per cent in a year compared to about 8 per cent upside in the headline index, has fallen by about 10 per cent since January, but the larger trend still remains to be on the upside, suggest experts.

ABB Ltd, with a market capitalization of more than Rs 47,000 crore, hit a 52-week high of Rs 2,469 on 25 January 2022, but the trend quickly turned sideways. It fell by about 10 per cent to close at Rs 2,230 on 10 May 2022.

The stock formed a bullish three strike line pattern last week with strong volumes which suggests that there is a chance of reversal. The stock is trading above the 50-DMA which will act as crucial support to the stock in the long term.



Investors can enter the stock now or on dips for a target of Rs 2,850, and a stop loss of Rs 2,000, suggest experts. The time duration is close to 3-5 weeks, they say.
is a global leader in power automation technologies that enable utility and industry customers to improve their performance while lowering environmental impact. The product range of the company includes power products, , automation products, process automation & robotics.

ABBET CONTRIBUTORS

The stock is trading well above crucial short and long-term moving averages which is a positive sign for bulls.

“Last week, the stock formed a bullish three strike line pattern and rose to 2 ½ months high on weekly charts. The bullish three line strike pattern carves out three red candles within a downtrend,” says Jatin Gohil, Technical and Derivative Research Analyst at

Securities.

“Each bar posts a lower low and closes near the intra bar low. The fourth bar opens even lower but reverses in a wide range outside bar that closes above the high of the first candle in the series,” he said.

Above-average volume indicates that major market participants were in favor of bulls. The stock has the potential to explore uncharted territory.

“This could lead the stock towards its prior high connecting rising trendline, which is placed at around Rs 2,850, and a stop loss of Rs 2,000. Since Mid-Nov’20, the stock has remained above its 50-week EMA. In case of any decline, the stock will respect its key moving average,” explains Gohil.

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

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