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Bata India, Relaxo, Khadim India: Time to step into footwear stocks?

Bata India today touched its 200-day moving average (DMA), placed at Rs 1,406
Footwear stocks were trading mixed in the morning deals on Tuesday. While Khadim India, Mirza International, and Relaxo Footwears advanced, Bata India, and Liberty Shoes traded in the red. In comparison, the benchmark S&P BSE Sensex was quoting 0.55 per cent higher at 40,656 levels. 

In an interview to a television channel on Tuesday, Sandeep Kataria, CEO of Bata India said that most of their stores are now open. The company, according to Kataria, has opened 15 new stores after unlock has started and is planning to open 30 more by the end of the year.

So, is it a good time to buy footwear-related stocks as the economy opens up more and people prepare to head back to offices? Will the festive season help revive demand? Here is how these stocks look on the technical charts.

Bata India Ltd (BATAINDIA): The counter touched the 200-day moving average (DMA) on Tuesday, placed at Rs 1,406. If it closes above the 200-DMA, then the sentiment will turn bullish. If that occurs, then one can expect a strong addition of volume resulting in a rally towards Rs 1,450 levels, which is its next resistance. On the downside, till the stock defends Rs 1,350 levels on the closing basis, this should imply the existence of buying momentum on decline. One can be optimistic about the stock. CLICK HERE FOR THE CHART
 

Relaxo Footwears Limited (RELAXO): On the daily chart, the counter is hovering around 200-DMA placed around Rs 653 levels and on the weekly chart, the price is strongly holding the support of 50-weekly moving average (WMA), which is currently located at Rs 646 levels. Some profit-booking may be seen towards Rs 695. If that gets absorbed, then a breakout may trigger a rally towards Rs 740 and Rs 780 levels, as per the weekly chart. CLICK HERE FOR THE CHART

 

Mirza International Limited (MIRZAINT): The overall trend is mildly bullish as the price has not breached the 200-DMA. Till the stock defends Rs 45 on the downside, the upside bias may see a revival in trend towards Rs 53 and Rs 57 levels, as per the daily chart. The Relative Strength Index (RSI) is holding the support of 38 value, that is also another indicator of price witnessing buying and accumulation on corrective moves. CLICK HERE FOR THE CHART

 

Liberty Shoes Limited (LIBERTSHOE): The current trend indicates a range bound trading in Rs 160 to Rs 130 levels. The sentiment is bullish with price witnessing buying momentum on deep correction. The major breakout may emerge only after a decisive close above Rs 160 levels. CLICK HERE FOR THE CHART

 

Khadim India Limited (KHADIM): The counter has resisted 200-DMA since June 2020. This selling pressure was even experienced in August and in the beginning of October. This clearly implies the stiff resistance of 200-DMA which the counter is not able to conquer. If the same scenario persists going ahead, then price may see further weakness towards Rs 90 levels.  However, if it manages to conquer 200-DMA, currently placed at Rs 117.50, then this may see a turnaround in sentiment and the price may escalate towards Rs 140 levels, as per the daily chart. CLICK HERE FOR THE CHART



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