Vesuvius India, part of the capital goods industry, has rallied by about 30 per cent in a month to hit a record high in August and technical indicators suggest that the uptrend is still intact in this smallcap stock.
It rose to a fresh record high of Rs 1,529 on 24 August. Short-term traders can go long in the smallcap stocks for a possible target of Rs 1,900-2,600, suggest experts.
The company which is part of the BSE Smallcap index rose from Rs 1,145 recorded on 25 July to Rs 1,478 as on 24 August which translates into an upside of 29 per cent.
is a world leader in the design, engineering, manufacture and delivery of refractory products.
The company has a market capitalisation of nearly Rs 3,000 crore. Vesuvius India weekly average delivery volume is 41.87 per cent, Trendlyne data showed as on 25 August.
Recent price action suggests that bulls are well in control. It rose more than 17 per cent in a week, and over 40 per cent in the last 3 months, data showed.
The stock has more than doubled from its COVID low of Rs 746, and any dips towards Rs 1,314-1,074 can be considered as a buying opportunity, suggest experts.
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“The stock price started its up move from Rs 65 (March 2009). The stock made a high of Rs 1,486 in July 2021 accompanied by higher bottoms and top formations and traded above averages in its uptrend,” Bharat Gala, President – Technical Research, Securities, said.
The stock was corrected to Rs 746 (April 2020) after Covid began. Higher bottoms followed and again the stock started trading above averages after July 2022.
“Recently, the stock gave a range breakout and made a new high above 1500. The MACD, ADX and KST indicator suggests a possible firm uptrend,” said Gala.
KST measures price momentum for four different price cycles, combining into a single momentum oscillator. ADX is used to quantify the strength of the trend.
“The possible target is Rs 1,900-2,300-2,600. If the stock price corrects downwards the buy levels are (Rs 1,314-1,236-1,173-1,110-1,074). Stop loss to be observed in the trade is Rs 940,” recommends Gala.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
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