Voltas, Blue Star: Trading ideas for consumer durable stocks amid heat wave

Blue Star is in a long term bull trend and may continue to remain a favorite for market participants.

Just few days back, IMD issued a warning on increased intensity of heat waves with an "orange" alert for select states of Rajasthan, Madhya Pradesh and parts of Maharashtra, predicting a rise of another two degrees Celsius in northwest region. On April 27, temperatues in Rajasthan soared above 45 degree-mark in seven of its districts.

Heat waves generally occur in the months from March to June, with some exceptions in July. It covers the most parts of India - including the states of Punjab, Haryana, Delhi, Uttar Pradesh, Bihar, Jharkhand, West Bengal, Odisha, Madhya Pradesh, Rajasthan, Gujarat, parts of Maharashtra & Karnataka, Andhra Pradesh and Telangana. 

Given, the intensity of heat waves this summer, consumer durable stocks mostly related to cooling electronics segment are are likely to be in focus on expectations of stronger sales in this quarter.

Shares of Havells India have gained over 13 per cent so far in April. Whereas, shares of Voltas and Blue Star have soared three-fold in the past two years. 

Here's a quick chart check on some of the prominent stocks, highlighting the likely trend ahead.
 

Voltas Limited (VOLTAS)

Outlook: Sustainable move above Rs 1,350 may trigger breakout 

Shares of Voltas witness hurdle over the Rs 1,350-mark, shows the weekly chart set up. Amid this resistance, the stock is currently forming a sideways consolidation. The lower accumulation falls around Rs 1,150 level. Right now, the trend is stable above its support of Rs 1,200. The overall structure represents several attempts made by the stock to infiltrate the hurdle mark, this signals a robust underneath strength with an inclination to breakout on the upside.  CLICK HERE FOR THE CHART

Blue Star Ltd (BLUESTARCO)

Likely target: Rs 1,270

Upside potential: 11%

Blue Star is ready to hit a new historic peak at Rs 1,270 mark as it intends to sustain over the major support of Rs 1,080, shows the weekly chart. This mark is the breakout level conquered in early April 2022.  The Moving Average Convergence Divergence (MACD) trades comfortably over the zero line with a positive crossover signifying a positive momentum ahead. CLICK HERE FOR THE CHART

Havells India Limited (HAVELLS)

Likely target: Rs 1,430

Upside potential: 8.50%

Shares of Havells India sustained above the breakdown mark of Rs 1,200 since the last three weeks suggesting a further upside. Immediate support for the stock comes at Rs 1,250. The medium term trend is bullish above of Rs 1,200. The next barrier is placed at Rs 1,430, shows the weekly chart. The MACD, which, made a positive crossover under the zero line with upward inclination, reflects a positive bias.  CLICK HERE FOR THE CHART

Whirlpool of India Limited (WHIRLPOOL)

Likely target: Rs 1,750

Upside potential:  7%

A major rally for Whirlpool of India is positioned to begin over the Rs 1,750 barrier. At the moment, the trend is sideways to mildly weak. However, until the recent reversal support of Rs 1,550 is defended, the counter may attempt to hit the Rs 1,750 level. CLICK HERE FOR THE CHART

Crompton Greaves Consumer Electricals Ltd (CROMPTON)

Outlook: Needs to hold 100-WMA

The weekly chart indicates support around the 100-weekly moving average (WMA) set at Rs 376.45. The counter is attempting to hold the said mark to reflect a positive bias. If it does hold, the momentum could see an upside revival. The next hurdle is at Rs 432, which is its 50-WMA.  CLICK HERE FOR THE CHART