Akzo Nobel India Soars On JSW Paints Deal: SEBI RAs See Bullish Momentum, But Advise Caution At Higher Levels

Akzo Nobel India shares surged 8% on Friday after its deal with JSW Paints. 

JSW Paints is acquiring up to 75% of Akzo Nobel India for around ₹9,000 crore, marking one of the biggest deals in the paints sector. This also triggers a mandatory open offer for an extra 26% from minority shareholders. 

However, JSW plans to hold 75%, meaning Akzo could remain partially invested. 

SEBI-registered analyst Mayank Singh Chandel highlighted that with this move, JSW becomes India’s 4th-largest paint company. It will also become the second largest in the industrial paints space, trailing behind Kansai Nerolac. 

Akzo Nobel India is best known for its Dulux brand, which holds a 7% market share, particularly strong in the premium and luxury segments. It recently sold its powder coatings business to its Dutch parent, refocusing its efforts on its core paints business. 

Chandel sees support for Akzo Nobel between ₹3,120 and ₹2,968, a previous resistance level, after strong buying was observed here. He also noted that the stock is holding above its 200-day Exponential Moving Average (EMA), a solid bullish signal. Its Relative Strength Index (RSI) traded near 60, indicating a healthy momentum and room to move higher. 

For the short term, Chandel set a target of ₹3,900 and a medium-term target of ₹4,500, with a stop-loss of ₹2,950. Over the long term, he believes that if the stock breaches its all-time high, investors can hold their position for extended gains. 

Chandel sees Akzo Nobel India as a stock worth watching.

Meanwhile, analyst Prabhat Mittal suggests a buy-on-dips strategy on Akzo. He observed that in the short term, Akzo Nobel India stock is underperforming the market and made lower highs. According to the trendline, he identifies an important resistance level at ₹3,650.  

On the downside, support is pegged at ₹3,020. 

Until Thursday, the stock was trading below the 20, 50, 100, and 200-day moving averages (DMA). The JSW Paints deal has triggered its upmove above its 20,50, and 100 DMA. 

Mittal advised traders to avoid buying it at higher levels and wait for a dip. His trading strategy is: buy Akzo Nobel on dips around ₹3,050 to ₹3,100 with a strict stop loss of ₹3,000 and a target of ₹3,600 and ₹3,650.

Year-to-date, Akzo Nobel India shares have fallen 3%. 

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