Swing Trade: Stock Rallies 6% this Week with Increasing Volume!
This week was a good one as the benchmark and indices jumped to an all-time high. As the bull run has resumed, skewing your portfolio on the long side might prove to be more fruitful rather than trying to catch the top.
A stock that popped up on my radar and is looking good for the next week is GIC Housing Finance Ltd (NS:). It is engaged in the business of housing finance and has a market capitalization of INR 997 crores.
Looking at the valuations, the stock is one of the cheapest in this space with a P/E ratio of 4.68, compared to the sector’s average of 15.46. The stock is also trading at less than its book value, with a P/B ratio of a mere 0.66 and a decent dividend yield of 2.43%, making it attractive for dividend lovers. FIIs, which held a stake of 1.41% in March 2022 have ramped it up to 2.04% by the June 2023 end.
Image Description: Dail chart of GIC Housing Finance with volume bars at the bottom
Image Source: Investing.com
On the technical front, the stock witnessed a good rally this week, gaining 6.41% to INR 192.65, depicting a good momentum on the upside. Looking at the daily chart, the stock has been rising for the last three sessions, and on Friday, it broke above the previous resistance of INR 190. This hurdle break has instilled a new confidence in the impending up move and the formation of higher highs and higher lows remains intact.
The volume activity has also been interesting. As the stock was rising for the last three sessions, the volume has also picked up. On Friday, a total volume of 973.2K shares was recorded on the NSE which was 230% higher than the 10-day average of 294.3K shares, which is not bad.
It won’t be surprising if the stock touches a level of INR 208 in the coming days. Due to a sharp move in 3 days, the stop loss is a bit lower, at INR 176.
Read More: Weekend Read: Let a Trading Coach Help You in Your Journey!
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This week was a good one as the benchmark and indices jumped to an all-time high. As the bull run has resumed, skewing your portfolio on the long side might prove to be more fruitful rather than trying to catch the top.
A stock that popped up on my radar and is looking good for the next week is GIC Housing Finance Ltd (NS:). It is engaged in the business of housing finance and has a market capitalization of INR 997 crores.
Looking at the valuations, the stock is one of the cheapest in this space with a P/E ratio of 4.68, compared to the sector’s average of 15.46. The stock is also trading at less than its book value, with a P/B ratio of a mere 0.66 and a decent dividend yield of 2.43%, making it attractive for dividend lovers. FIIs, which held a stake of 1.41% in March 2022 have ramped it up to 2.04% by the June 2023 end.
Image Description: Dail chart of GIC Housing Finance with volume bars at the bottom
Image Source: Investing.com
On the technical front, the stock witnessed a good rally this week, gaining 6.41% to INR 192.65, depicting a good momentum on the upside. Looking at the daily chart, the stock has been rising for the last three sessions, and on Friday, it broke above the previous resistance of INR 190. This hurdle break has instilled a new confidence in the impending up move and the formation of higher highs and higher lows remains intact.
The volume activity has also been interesting. As the stock was rising for the last three sessions, the volume has also picked up. On Friday, a total volume of 973.2K shares was recorded on the NSE which was 230% higher than the 10-day average of 294.3K shares, which is not bad.
It won’t be surprising if the stock touches a level of INR 208 in the coming days. Due to a sharp move in 3 days, the stop loss is a bit lower, at INR 176.
Read More: Weekend Read: Let a Trading Coach Help You in Your Journey!
