Industrial Manufacturing Stocks Rising

JC Parets
March 28, 2022

We are almost done with the first quarter of the calendar year and the last quarter of our financial year. There are certain sectors that are peeping out from beneath the surface and hence attracting attention. Is this a theme we may see play out in the quarter going forward? Most likely. Most sectors have remained sideways or subdued in their move and they are finally picking a side!

Today we are here to discuss one such sector and some interesting setups that one could take advantage of.

Let's see what's on the roster sheet today.

We mentioned this in the recently concluded conference call, and we'll say it again- Bouncebacks are here! From within the price bouncebacks that we're seeing certain sectors are displaying more strength. One such sector is the Industrials. We're talking about the Industrial Manufacturing sector, so don't go looking for the US sector XLI.

BUT, if you did, you wouldn't be entirely wrong. The Industrials sector (XLI) in the US is picking up pace as we speak. So this is one of those times where you see similar themes play out across different geographies. Fun when that happens, isn't it? Reiterates the understanding we have of the market.

So Industrials in India have picked up pace as well. The case remains the same as we witnessed relative strength in our industrials index against the Nifty 500. It has 38 constituents from the industrial manufacturing sector of Nifty 500.

Now, let's look at some actionable ideas at current levels that look attractive on the long side for the next few weeks and months.

First up, we have RHI Magnesita India. We have a breakout above its resistance at 558. The momentum indicator has remained in the upper half of the pane, indicating the inherent strength in the stock. As long as the price stays above 558, we can look for a target near 835.

Timken India continues to consolidate above 1,855. It's a typical slow and steady stock with the price trending higher unaffected by broader market volatility. The bullish case holds true as long as the price is above the crucial level of 1,855. The target to track would be 2,605.

Polyplex is breaking above the range formed near the critical Fibonacci level. We are bullish above the risk management level of 1,897, for a target near 2,892.

Ingersoll-Rand had a fresh breakout above 1,527. We are bullish as long as the price remains above 1,528, with a target near 2,180.

Triveni Turbine consolidates above the multi-year base breakout level while maintaining its relative strength against the Nifty 500. We're positive if it stays above the risk management level of 168 with a target near 242.

Everest Industries had a big base breakout. These smiley faces often provide a high probable setup with a clear risk-reward level. We are bullish above 638 with a target near 960.

Thermax is among the top large-cap stocks in Industrials. Recently it retested the Fibonacci level at 1,780 while posing relative strength against Nifty 500. We are bullish as long as it stays above 1,780 with a target near 2,530.

This is our lineup of strong stocks among the Industrial Manufacturing stocks. Which ones are you tracking?

Thanks for reading and please let us know if you have any questions.

Allstarcharts Team

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