Bullish Breakout: This Mid-cap Stock Flies To Rs 43,000

Domestic stock markets headed for a correction after record highs. Major indices closed with losses for the last four days. This was the heaviest weekly loss recorded by the indices in seven months. However, concentrated movements in stocks are also evident in the market. Honeywell Automation (BSE : 517174, NSE : HONAUT) is a mid-cap stock that has been on the winning streak even as the market has taken a turn for the worse.

Honeywell Automation

Honeywell Automation India Limited is a company jointly started in 1987 by Tata Group and Honeywell, an American electronic goods company. At that time both the companies had 40 percent equity share. But Honeywell Asia Pacific acquired the stake from Tata in 2004. Then the name was changed from Tata Honeywell to Honeywell Automation India Limited.

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Share details

Currently, the market value of Honeywell Automation is Rs 36,333 crore. During the last 52 weeks, the high price of the stock was Rs.44,150 and the low price was Rs.34,343. Recently the company has been able to reduce its debt. With this, the company is in a situation where there is no debt to speak of. It is also a company that pays dividends without fail. Last financial year, Honeywell Automation’s revenue was Rs 3,447 crore and net profit was Rs 438 crore.

The target price is Rs 43,000

Brokerage firm LKP Securities has suggested buying shares of Honeywell Automation from Rs 40,650 level. From here it is concluded that the stock can advance to Rs 42,500 – 43,000 in the short term. Through this, six percent gain is targeted. The brokerage firm also stated that buyers of Honeywell Automation shares should set a stop loss at Rs 39,500.

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Technical Analysis

Honeywell Automation stock has seen a bullish breakout on its intraday chart. Along with this, the increase in the number of share transactions is also a good sign. Seema underlines the possible upswing in the stock in the near future. The closing high of the last five days has been broken. All these indicate bullish influence on the stock. A falling trendline breakout is also a positive factor in RSI, one of the most relied upon technical indicators.

(Notice: The above share recommendation is given by the brokerage firm in its own capacity. Times Internet is not responsible for this. You can seek the services of SEBI approved financial experts before investing.)