The stock has rebounded twice near ₹2,380 in recent sessions, mirroring a reversal pattern last seen in April.
Shares of Balkrishna Industries remain under pressure but are holding above a key long-term support near the 200-day exponential moving average (EMA).
SEBI-registered analyst Deepak Pal said the current downtrend may offer a buy-on-dip opportunity with a ₹2,350 stop loss and upside targets of ₹2,600–₹2,650.
At the time of writing, shares of Balkrishna Industries were trading at ₹2,428.30, up 1.2% on the day.
Pal noted that Balkrishna Industries has been in a continuous downtrend since early June, trading below its 14-, 55-, and 200-day EMAs.
Technical indicators like MACD and Parabolic SAR reflect ongoing weakness, but Pal highlighted that the Relative Strength Index (RSI) around 14 could be a signal of oversold conditions.
On the weekly chart, Pal said the stock is holding support near its 200-day EMA around ₹2,380.
He observed that Balkrishna bounced from ₹2,391 last week and again from ₹2,388.20 this week, currently trading around ₹2,399.50.
A similar setup occurred in April when the stock reversed from ₹2,360 and rallied to ₹2,816 by early May.
On the long-term buy and sell levels, Pal said the recommendation was a buy-on-dip with a stop loss of ₹2,350.
He added that if it sustains above the 14-day EMA, it will retest ₹2,500 and can go up to ₹2,600–₹2,650 on continued buying.
On fundamentals, Pal said Balkrishna Industries is a large-cap off-highway tire manufacturer with a market cap of ₹46,000–₹48,000 crore and trading at a P/E multiple of 27x–30x. “
The company has a strong balance sheet with low debt, has given regular dividends, has a ROE of 15%–18%. Promoter holding stands at 58%.
Pal cited its global presence and focus on niche segments as long-term positives, while advising caution over currency fluctuations, raw material prices, and global demand uncertainties.
On Stocktwits, retail sentiment was ‘bullish’ amid ‘normal’ message volume.
The stock has declined 15.5% so far in 2025.
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