Voltas Limited is a premier air conditioning and engineering solutions provider and a Projects specialist. Voltas Limited is part of the Tata Group, and in addition to Air Conditioners, Air Coolers, Water Dispensers, Water Coolers, and Commercial Refrigeration products. Company offers engineering solutions for a wide spectrum of industries in areas such as heating, ventilation, air conditioning, refrigeration, electro-mechanical projects, electrification, water management & treatment, cold chain solutions, building management systems, indoor air quality, textile machinery, and mining and construction equipment. Voltas is one of the top ten companies within the Tata group and is the undisputed market leader in room air conditioners in India with market share of more than 24% (as per the latest published reports for FY19).
Voltas and its new JV in Home Appliances, Voltas Beko, had launched its Festive Offers for 2018 during the early November sessions. The offers were rolled out on pan-India basis which boosted their books of accounts. As a result, stock prices witnessed recovery move but will the rally continue further??
Voltas on the weekly charts has been making lower highs and lower lows an indication that the intermediate trend of the stock has turned down. The stock broke the higher low at 566.50 which also happened to be the role reversal zone. Therefore an important zone once was broken and was an indication that the trend of the stock has turned bearish. The break of the steep trend line was the first indication. The stock retraced back from the 492 levels to the 640 odd levels and that was an opportunity to exit the stock.
As mentioned, the stock does give you an opportunity but one needs to be alter to take the opportunity. The stock gain came back to the 492 levels it took the trend line as support as well as the role reversal zone of 492.50 as support and has bounced back from there after briefly breaking the zone. The current run has halted at the role reversal zone of 566.50. Therefore the rallies here are an opportunity to sell and one should combine the short term charts to initiate a trade.