Stock Soars Above ‘Key’ Resistance with 500% Volume Jump!
While the broader markets have lost most of their opening gains, some stocks are not just holding their ground but also going against the grain. The index is currently up 0.12% to 12,677, by 1:50 AM IST, showing relatively better strength than the flat return of .
One stock from the pharma pack, that seems to be reversing after a consistent decline is Jubilant Pharmova Limited (NS:). It is a small-cap pharmaceutical and life sciences company, with a market capitalization of INR 4,890 crores. The stock is trading at a lower valuation than its book value, with a P/B ratio of 0.92 and a dividend yield of 1.63%.
Image Description: Daily chart of Jubilant Pharmova with volume bars at the bottom
Image Source: Investing.com
Looking at the last one-year return, the stock is down around 26%. However, now the tide seems to be turning in the favor of bulls as the stock jumped 3.8% to INR 323, surging past its key horizontal resistance of INR 320. The stock had been trying to pass above this hurdle for more than 2 months but strong selling pressure turned it lower every time. Today’s breakout seems to be sustaining and if traders get a closing above the resistance, then the counter can become a good candidate for a long opportunity.
The volume on this breakout day is also high, at over 421K shares so far which is the highest one-day volume since 20 March 2023 and 515% higher than the 10-day average figure of 68.4K shares. This increasing demand from investors is a good indication of the reliability of this breakout. As this is a highly oversold counter, traders can expect an upside to the next hurdle of INR 350. This is on the conservative side and the stock holds a much higher potential.
To manage the risk properly, traders can maintain a stop loss below a strong support level of INR 300, which is also a psychological demand zone.
Read More: A 4% Breakout Stock that’s Breaking Range in Style!
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While the broader markets have lost most of their opening gains, some stocks are not just holding their ground but also going against the grain. The index is currently up 0.12% to 12,677, by 1:50 AM IST, showing relatively better strength than the flat return of .
One stock from the pharma pack, that seems to be reversing after a consistent decline is Jubilant Pharmova Limited (NS:). It is a small-cap pharmaceutical and life sciences company, with a market capitalization of INR 4,890 crores. The stock is trading at a lower valuation than its book value, with a P/B ratio of 0.92 and a dividend yield of 1.63%.
Image Description: Daily chart of Jubilant Pharmova with volume bars at the bottom
Image Source: Investing.com
Looking at the last one-year return, the stock is down around 26%. However, now the tide seems to be turning in the favor of bulls as the stock jumped 3.8% to INR 323, surging past its key horizontal resistance of INR 320. The stock had been trying to pass above this hurdle for more than 2 months but strong selling pressure turned it lower every time. Today’s breakout seems to be sustaining and if traders get a closing above the resistance, then the counter can become a good candidate for a long opportunity.
The volume on this breakout day is also high, at over 421K shares so far which is the highest one-day volume since 20 March 2023 and 515% higher than the 10-day average figure of 68.4K shares. This increasing demand from investors is a good indication of the reliability of this breakout. As this is a highly oversold counter, traders can expect an upside to the next hurdle of INR 350. This is on the conservative side and the stock holds a much higher potential.
To manage the risk properly, traders can maintain a stop loss below a strong support level of INR 300, which is also a psychological demand zone.
Read More: A 4% Breakout Stock that’s Breaking Range in Style!
