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Honda India Power Products, part of the S&P BSE Smallcap index, rose over 60 per cent in a year compared to an over 7 per cent upside seen in the Nifty50 pack, and the rally may not be over yet.

The stock, with a market capitalization of over Rs 1,700 crore, hit a record high of Rs 1,818 on May 20, 2022. The stock lost momentum after hitting a high, but experts feel that it is a good buy on dips stocks till Rs 1,650-1,330 levels.

Honda India Power Products (HIPP) (formerly known as

) has been a leader in the power products industry for over three decades.



It is a subsidiary of Honda Motor Co. Japan and was incorporated on September 19, 1985, the company website showed.

The stock has seen a vertical rise so far in May. It surpassed Rs 1,689 (breakout point of Ascending Triangle) on May 17 to hit a fresh high above Rs 1,800 for the first time at Rs 1,818 on May 20. The previous high was placed at Rs 1,755, recorded back in November 2016.

The resistance line is Ascending Triangle which is almost horizontal here (i.e. highs need not be at the exact price, but are close to each other). The lows, on the other hand, keep on increasing on a successive basis.

Honda 23 MayET CONTRIBUTORS

This hints that the bulls slowly gaining control, though they are not able to break the resistance level. F
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The stock is trading above its short- and long-term moving averages of 5,10,20,50,100 and 200-DMAs which is a positive sign for the bulls.

The stock price started its up move from Rs 118 (March 2009). It made a high of Rs 1,750 in November 2016 accompanied by supportive volumes.

Profit booking followed and the stock corrected to Rs 701 (March 2020) due to the Covid Pandemic event.

“Recently the stock gave Ascending Monthly triangle breakouts (2016-2022) & made a high of Rs 1,818 which is above November 2016 high, accompanied by volumes,” Bharat Gala, President – Technical Research, Ventura Securities, said.

“The MACD, Demand Index & ADX indicator suggest a possible firm uptrend. The possible target is Rs 2,800. If the stock price corrects downwards, the buy levels are Rs 1650-1550. On the further downside, the stock may find support at Rs 1467, wherein buying can be initiated at Rs 1,384-1,337. A stop loss to be observed in the trade is Rs 1,179,” he added.

(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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