Balu Forge Industries, which manufactures crankshafts and forged components, have rallied by over 1300% in the last 2 years.
In just the last six months, the stock has delivered impressive multibagger returns of 250%. Last week, it rallied 33%, though it experienced some profit booking in Monday’s session, falling by 1.5%.
“The profit booking in Balu Forge on Monday has to be looked at with a hawk’s eye in the stellar rally that the stock has had. If there is follow through selling and we see prices break the Rs 740 mark in the coming days, we can quickly see another 10% on the downside in this counter,” said Rahul Ghose, CEO of Hedged.in while commenting on the stock’s recent rally.
Ghose further added that after the 10% dip, around Rs 670-680 levels, one should look to see if there is a closing happening below the bollinger band indicator with any week candlestick formation, which might cause another round of selling in the stock (however price action should be looked at keenly over here).
“On the contrary, if prices go higher above the Rs 800 levels and sustain above there, the upward momentum can see one more leg as well. The next few days hence becomes crucial from the stocks next movement perspective,” Ghose added.
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Earlier in the month of July, the company had announced its June quarter results wherein the company had posted an 105% increase in its profit after tax at Rs 16.68 crore against Rs 34 crore in the year-ago period.
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