The stock with a market capitalisation of more than Rs 91,000 crore hit a 52-week high of Rs 2,586 on 5 July 2022 which resulted in a breakout above the neckline of the range placed at Rs 2,521.
The stock is trading near the overbought territory so some consolidation cannot be ruled out, but the momentum remains strong and short-term traders can look at buying the stock on dips for a target of Rs 2,700, suggest experts.
The relative strength index or the RSI is placed at 67.7. RSI below 30 is considered oversold and above 70 is considered overbought. MACD is above its center and signal line, this is a bullish indicator.
For the past six months,
has broadly consolidated in a 300-point range between Rs 2,200 and Rs 2,500. When viewed from the perspective of a line chart, this consolidation is visible in the form of an ascending triangle pattern.
This pattern is composed of range-bound price action, indicating a balance of power between the bulls and bears.
Siemens has started the week on an upbeat note, advancing nearly 5 per cent on Monday. The advance has also occurred with substantial intraday volume – the highest since the second week of May.
This indicates that the buying interest in the stock is returning following months of subdued price action, suggest experts.
On the price action front, the stock is trading above its 50-day, 100-day, and 200-day moving averages, denoting short-term and medium-term strength.
“The +DMI line has surged above the -DMI line. Also, the +DMI line is just surpassing a trend line drawn connecting the December 2021, April 2022, and May 2022 peaks. This indicates bullishness,” Abhishek Chinchalkar, CMT Charterholder and Head of Education, FYERS, said.
“From a relative strength perspective, Siemens continues outperforming the Nifty. While the index languishes near its 52-week low, Siemens is trading near its 52-week/all-time high. As we write, the ratio of Siemens to Nifty stands at a 6-year high,” he said.
All these indicate bullishness in the stock. “Accordingly, one could look for buying opportunities on a pullback towards the Rs 2,480-Rs 2,475 region for a potential 8-10 per cent upside till Rs 2,700 while maintaining a stop loss below Rs 2,350,” recommends Chinchalkar.
The time frame for this view is around 6-8 weeks, he added.
(Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of Economic Times.)
