The stock hit a 52-week high of Rs 228.90 on 23 July 2021, but it failed to hold on to the momentum. It closed at Rs 110.90 on 20 July 2022 which translates into a fall of over 50 per cent.
The stock bounced back after hitting a low of Rs 93 on 20 June 2022. It consolidated around Rs 100 levels for the past 2-3 weeks. The stock rallied more than 15 per cent in a month and about 5 per cent in a week.
The momentum helped the stock to close above the 50-DMA on 20 July for the first time since April 2022 which is a positive sign for the bulls.
Short-term traders can look at buying the stock now or on dips for a possible target closer to Rs 120-124 in next 3-4 weeks, suggest experts.
On the price front, the Relative Strength Index (RSI) is placed at 60.3. RSI below 30 is considered oversold and above 70 is considered overbought, Trendlyne data showed. MACD is above its center and signal line, this is a bullish indicator.
“The stock after a steep correction has witnessed base formation around the level of Rs 100. The stock on the daily chart is trading in an uptrend with a higher high and higher low formation intact,” Kunal Shah-Senior Technical and Derivative Analyst at
, said.
“The stock has given a strong breakout with a sharp increase in volumes which indicates its strength. The F&O data too suggests a bullish position with a 15 per cent oi position added,” recommends Shah.
In terms of shareholding, FIIs increased their stake while mutual funds reduced their stake marginally for the quarter ended June 2022.
FIIs raised stake from 7.79 per cent in March 2022 quarter to 7.95 per cent in the June quarter while mutual funds reduced stake from 12.91 per cent in March 2022 quarter to 12.84 per cent recorded for the quarter ended June 2022.
(Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of Economic Times)