Exide Industries shares hit fresh one-year high, up 35% in 7 sessions; should you still ride the rally?

Exide Industries shares continued to register strong gains for the seventh straight session in Monday's trade. The stock surged 6.56 per cent to hit anew one-year high of Rs 423.80. At this price, it has surged 35.16 per cent in seven trading days.

Global brokerage Morgan Stanely, in its latest note, said Exide Ind shares can rise significantly over the next decade as the firm could become a leading player in battery cell localisation. It has raised its target price on the batter maker's shares to Rs 485 from Rs 373 earlier with an overweight rating.

Earlier this month, Exide announced that its wholly-owned unlisted subsidiary (Exide Energy Solutions Ltd) has signed a non-binding memorandum of understanding (MoU) with Hyundai Motor Company (Hyundai Motors) and Kia Corporation (Kia) for strategic co-operation in India's EV (electric vehicle) market.

Both the parties will work together for development, production and supply of battery cells for Hyundai Motor's electric vehicles dedicated to the Indian market, it stated.

On the technical front, the counter traded higher than the 5-day, 10-, 20-, 30-, 50-, 100-, 150-day and 200-day simple moving averages (SMAs). The stock's 14-day relative strength index (RSI) came at 51.03. A level below 30 is defined as oversold while a value above 70 is considered overbought.

An analyst largely suggested that Exide has potential to rise further in the near term.

"The stock has witnessed a decent breakout. One can buy around Rs 380-390 level for upside targets of Rs 430-450 in the short term," Ratnesh Goyal, Head of Technical Analysis at Arihant Capital, told Business Today TV.

The scrip saw heavy trading volume today as around 14.55 lakh shares changed hands on BSE at the time of writing this story. The figure was higher than the two-week average volume of 9.13 lakh shares.

Turnover on the counter came at Rs 60.09 crore, commanding a market capitalisation (m-cap) of Rs 34,926.50 crore.

As of December 2023, promoters held a 45.99 per cent stake in the storage battery manufacturing firm.