Voltas announced its second quarter earnings last week and the numbers were not disappointing in comparison to the expectations. A look at the recent stock price action suggests that there is a lot of buying interest at Rs.81-84 levels. From the daily chart featured below, the sequence of higher highs and higher lows suggests that the stock is in an uptrend.
As highlighted in the chart, the stock is currently positioned just below the blue colored balance line at Rs.95. A breakout past this line would be a sign of strength and could push the stock to the target at Rs.110. While we expect Voltas to rally to the major resistance at Rs.135, the immediate resistance of Rs.110 would be a significant hurdle for the stock to contend with. The positive view would be under threat if the stock falls below the support level at Rs.83.
(The view featured here is based on Technical Analysis of historical stock price action. Please read the Disclaimer)