Stock Ready to Roll Amid a ‘Range Breakout’, Gains 4%!
The Indian market has been trading almost flat for the day so far with some volatility, all thanks to the upcoming rate hike decision by the US Fed. Despite some cautiousness being maintained by investors, some stocks are luring them with their eye-catchy returns.
Sterling and Wilson Renewable Energy Limited (NS:) (SW Solar) is one stock that is looking all set to start a rally on the upside. The company has a market capitalization of INR 5,749 crores and provides end-to-end solar engineering, procurement and construction (EPC) solutions.
Image Description: Daily chart of SW Solar with volume bars at the bottom
Image Source: Investing.com
The stock had been consolidating in a broad range for quite some time. The upper resistance of this range is around INR 312 and the support on the downside is around INR 275. For almost three months, the stock traded sideways inside this range, witnessing selling pressure from the upper levels and demand from the lower level. This entire time period kept investors indecisive as to where the stock could be heading.
Today, despite a subdued market, the stock seems to be outperforming many peers with a noticeably strong breakout on the daily chart. The stock rose 4.06% to INR 315.5 by 11:12 AM IST, which is not just a sufficient move above the resistance level but also the highest level since 16 June 2022. The relative strength of the stock is strong proof that it is a good candidate for the immediate future.
The volume for the day so far has been recorded at 1.01 million shares, making it the highest one-day volume in over a month and that too within a couple of hours of trading. Hence the mass participation from investors can easily be noticed. The higher the participation, the better the chances of a potential up move.
Although, the breakout seems almost confirmed, closing above the resistance would be a better confirmation. Therefore, waiting for the session’s close could be a good idea rather than jumping the gun.
On the upside, the level of INR 350 would be the first target to which the stock could travel. This is roughly based on the height of the total range from which the stock is coming out. Even after a breakout, if the stock falls back inside the range, it probably would not be disappointing as the broader structure of the chart looks very positive, having made a strong base. However, if the stock falls below the support of the range, i.e. INR 275 on a closing basis, then the up trend might fade.
The Indian market has been trading almost flat for the day so far with some volatility, all thanks to the upcoming rate hike decision by the US Fed. Despite some cautiousness being maintained by investors, some stocks are luring them with their eye-catchy returns.
Sterling and Wilson Renewable Energy Limited (NS:) (SW Solar) is one stock that is looking all set to start a rally on the upside. The company has a market capitalization of INR 5,749 crores and provides end-to-end solar engineering, procurement and construction (EPC) solutions.
Image Description: Daily chart of SW Solar with volume bars at the bottom
Image Source: Investing.com
The stock had been consolidating in a broad range for quite some time. The upper resistance of this range is around INR 312 and the support on the downside is around INR 275. For almost three months, the stock traded sideways inside this range, witnessing selling pressure from the upper levels and demand from the lower level. This entire time period kept investors indecisive as to where the stock could be heading.
Today, despite a subdued market, the stock seems to be outperforming many peers with a noticeably strong breakout on the daily chart. The stock rose 4.06% to INR 315.5 by 11:12 AM IST, which is not just a sufficient move above the resistance level but also the highest level since 16 June 2022. The relative strength of the stock is strong proof that it is a good candidate for the immediate future.
The volume for the day so far has been recorded at 1.01 million shares, making it the highest one-day volume in over a month and that too within a couple of hours of trading. Hence the mass participation from investors can easily be noticed. The higher the participation, the better the chances of a potential up move.
Although, the breakout seems almost confirmed, closing above the resistance would be a better confirmation. Therefore, waiting for the session’s close could be a good idea rather than jumping the gun.
On the upside, the level of INR 350 would be the first target to which the stock could travel. This is roughly based on the height of the total range from which the stock is coming out. Even after a breakout, if the stock falls back inside the range, it probably would not be disappointing as the broader structure of the chart looks very positive, having made a strong base. However, if the stock falls below the support of the range, i.e. INR 275 on a closing basis, then the up trend might fade.