INSUBCONTINENT EXCLUSIVE:
Shares of Sona BLW Precision Forgings jumped as much as 8.5% on Thursday to Rs 494 on the BSE, after a report said Chinese electric vehicle
giant BYD is in discussions with the Indian auto component maker for the supply of EV components.The company may also set up a local
manufacturing facility in China as part of its long-term plans, according to a report by CNBC-TV18.Citing people familiar with the matter,
the report said discussions between Sona BLW and BYD have been ongoing for several months, and the potential local manufacturing facility in
expansion for Sona BLW, which already counts Tesla, a key BYD rival, among its major customers for EV components.Surge in volumes, but stock
still lagging YTDThe rally was supported by a spike in trading volumes, with more than 1.26 crore shares changing hands as of 12:10 pm,
The stock is up around 8% over the past five sessions and nearly 2% in the past month
However, it has dropped over 16% in the past six months and is down nearly 18% year-to-date.Technical indicators reflect bearish undertoneOn
the technical front, the stock is trading below five of its eight key simple moving averages (SMA), specifically the 30-day, 50-day,
100-day, 150-day, and 200-day SMAs, but remains above the 5-day, 10-day, and 20-day SMAs.The Relative Strength Index (RSI) stands at 33.1,
just above the oversold threshold of 30
Meanwhile, the Moving Average Convergence Divergence (MACD) is at -13.2 and remains below both the centre and signal lines, reinforcing a
strong bearish indicator.Also read | MobiKwik shares down 61% from peak, charts hint at upside till Rs 300
Should you buy?(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own
These do not represent the views of the Economic Times)
