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News Topical, Digital Desk : ABB India shares are seeing a strong rally following its quarterly results. The stock rose more than 7% in early trading on February 20th. The company reported a consolidated net profit of ₹432.85 crore for the quarter. However, compared to the previous year, the profit fell 18.08%.
ABB India shares opened at ₹5,725 in the morning and hit an intraday high of ₹6,155. Significantly, this stock has delivered a return of over 30% in the past month. Brokerages and experts have offered their opinions on whether this company's shares should be purchased.
Profit fell, then why did the share rise?
1. The drop is already built into the price
Independent market expert, Abhishek Bhatt said that there was pressure on the stock before the results and the market had already anticipated weak results, hence there was no big selling after the “poor results”, instead the shares rose.
On the other hand, the company said that the decline in ABB India's profits was mainly due to rising material costs and currency fluctuations.
2. Rely on margin and order book
Even though profits remained under pressure, management commentary and order book position gave investors confidence that further recovery was possible.
3. Technical breakout
The stock broke above the ₹5,900–₹6,000 resistance zone on strong volume. Intensive short covering was also observed on the intraday chart. The price held above the VWAP (around ₹6,027), indicating intraday strength.
Technical outlook on the stock
Intraday Support: ₹5,980 – ₹6,000
Strong support: ₹5,850
Resistance: ₹6,150 – ₹6,200
52-Week High: ₹6,260 (close to this level)
A close above ₹6,200 suggests a move towards ₹6,260–₹6,350. On the downside, weakness could intensify below ₹5,900. Global brokerage firm UBS has a 'neutral' rating on ABB India shares and a target price of ₹5,310 per share, implying a downside bias from the current price.
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