The (SCI) has surged by more than 100% in the last 3 years but the rally may not be over yet and those who missed the rally can look to buy the stock now for a target towards Rs 170, suggest experts.
The shipping company with a market capitalization of more than Rs 6,700 crore hit a 52-week high of Rs 151 on 20 December 2022. The stock failed to hold on to the momentum but witnessed a bounce back after retesting 50-DMA on daily charts.
On the weekly charts, the stock bounced back after retesting the neckline breakout of an inverse Head & Shoulder pattern. The breakout was recorded on weekly charts back in October 2022.
Supertrend indicator triggered a buy signal back in October 2022 which is a positive sign for the bulls. The RSI is also above 50 levels.
In terms of price action, the stock rose more than 8% in a month, over 20% in the last 3 months, and over 40% in the last 6 months.
ET CONTRIBUTORS
In terms of price action, the stock price is trading well above most of the crucial short and long-term moving averages such as 5,10,30,50,100, and 200-DMA which is a positive sign for the bulls.“SCI stock which is approaching highs appears to be displaying strong upward momentum. The stock has exhibited an upward trend, with the price finding support at the neckline of an Inverse Head and Shoulder pattern. This breakout was observed on October 31, 2022,” Patil, Technical Research Associate at GEPL Capital, said.The upward momentum was preceded by the price which is finding support at the 18-week Exponential Moving Average, which served as a consistent support level.
“The breakout was further confirmed by the presence of higher trading volumes. Additionally, the Relative Strength Index, a momentum indicator, is aligned with the price movement, further indicating the continued uptrend,” he said.
“Going ahead, we expect the prices to move Higher till Rs 170 in the next 1-2 months where the stop loss must be Rs 130 on the closing basis,” recommends Patil.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
Denial of responsibility!NewsBit.us is an automatic aggregator around the global media. All the content are available free on Internet. We have just arranged it in one platform for educational purpose only. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, all materials to their authors. If you are the owner of the content and do not want us to publish your materials on our website, please contact us by email – [email protected]. The content will be deleted within 24 hours.
ET CONTRIBUTORS