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Multibagger stock rises 200% in one year. Sumeet Bagadia sees 45% gain in 3 mths


Multibagger stock to buy now: Sutlej Textiles shares are one of the multibagger stocks in 2021. The small-cap textile stock has risen from around 29 to 87 in lat one year, logging near 200 per cent rise in this period. However, Sumeet Bagadia of Choice Broking believes that Sutlej Textiles share price may go up to 125 levels in next 2 to 3 months, delivering around 45 per cent return to its shareholders from its current 87 per share levels.

Highlighting the reason for being bullish on Sutlej Textiles share price; Sumeet Bagadia, Executive Director at Choice Broking said, “On a monthly chart, this multibagger stock has given a breakout of rounding bottom formation at 52 level and made a high at 81.20 levels but later consolidated in a range and finally managed to break the resistance level and made a new high at 88.75 levels. Moreover, the stock has given breakout of its 52-week high with increase in volume activity and trading near its March 2018 high i.e., 87, which suggest strength for upside in the counter.”

“On a daily chart, the stock has formed a Bullish Engulfing candlestick pattern, which indicates a upside move in the counter. Additionally, Sutlej Textiles share price has also moved above the upper leg of Bollinger Band, which suggests a bullish rally to continue further in the near-term. Furthermore, the stock has been trading above 21×50 Days Moving Averages (DMA) with a bullish crossover which shows a positive trend for the time being,” said Bagadia.

Advising stock market investors to buy Sutlej Textiles shares; Sumeet Bagadia said, “One can initiate a long position in Sutlej Textiles shares at current market price of 87 or a fall in the price till 82 levels can be used as buying opportunity for the upside target of 100 to 125 while the support is placed at around 75 or 70 levels. So, a stop loss on closing basis of 70 should be placed at lower levels.” The Choice Broking expert said that given target of 125 can be expected in next 2 to 3 months.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.

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