Gladiator Stocks - Bosch - ICICI Direct

Technical View

- Auto and Auto ancillary space has been exemplary in its relative outperformance amid recent market corrective phase. Within ancillary stocks, Bosch has undergone significant price/time correction over past six years. Technically at current juncture the stock provides extremely favourable risk-reward setup from medium term perspective

- The share price has halted its decline and formed potential double bottom bullish reversal pattern as May 22 low of 12900 has been held again in June 22 indicating supportive efforts emerging consistently at 50% retracement of entire 2020-2021 rally (7850-19250) that also coincides with major swing lows of May and June 2021

- Weekly RSI has formed a positive divergence against its own May low and also given breakout above falling trend line which is in force since October 2021 showing early signs of revival in upward momentum

Fundamental View

- Bosch Ltd (Bosch) is a technology leader providing solutions in automotive, industrial technology, consumer goods, energy & building technology. Mobility solutions (automotive products) comprised ~85% of FY22 sales with share of Business Beyond Mobility at ~15%

- Key triggers for future price performance include: (i) Bosch's role in developing technology leading auto components, EV solutions to some of the domestic OEMs & CV cyclical recovery, (ii) incremental role to play in e-mobility space along with new age technologies like flex fuels, fuel cells etc. with apt support from the parent, (iii) intend to increase the share of aftermarket sales from present levels of ~20% to ~25% in due course of time (margin accretive), among others

For details, click on the link below: Link to the Report

Shares of Bosch Limited was last trading in BSE at Rs. 14240.45 as compared to the previous close of Rs. 13811.35. The total number of shares traded during the day was 449 in over 238 trades.

The stock hit an intraday high of Rs. 14313.00 and intraday low of 13854.95. The net turnover during the day was Rs. 6303145.00.

Source : Equity Bulls

Keywords

Bosch INE323A01026 GladiatorStocks ICICIDirect