Mumbai: Domestic stock markets are seeing a mixed trend today amid weak global cues. At the lower level, good buying is seen in quality midcap and smallcap stocks. These include shares of Elgi Equipments. On Monday, it saw a five percent increase. Along with this, the stock has shown a strong price volume breakout from the double bottom pattern on the technical chart. Such breakouts are considered positive in the medium term. Also, it has crossed the 20 day and 50 day daily moving average. Today it saw huge volume which is higher than the 10 day and 30 day average volume. The stock has gained about 15 per cent in the last three days, which shows investor interest in it.
Along with the positive price structure, its technical parameters are showing bullish signs. Its 14-day RSI (50.65) has surpassed its previous swing high and shows increasing strength in the stock. Its MACD is indicating a bullish crossover. Also OBV is showing increasing buying activity in this stock. Overall, this stock is expected to rise in the coming days. The stock has fallen well below its previous swing high and its price is looking very attractive right now. Currently, the share of Elgi Equipment is trading at Rs 444 on NSE. Long term investors and momentum traders can add this stock to their watchlist. This article is powered by Dalal Street Investment Journal, India’s No. 1 investment magazine. Click here for regular updates on Winning Stocks and Recommendations.
(Disclaimer: This above is third party content and TIL hereby disclaims any and all warranties, express or implied, relating to the same. TIL does not guarantee, vouch for or endorse any of the above content or its accuracy nor is responsible for it in any manner whatsoever. The content does not constitute any investment advice or solicitation of any kind. Users are advised to check with certified experts before taking any investment decision and take all steps necessary to ascertain that any information and content provided is correct, updated and verified.)
