Recently, the stock gave a breakout from Ascending Triangle pattern, as well as the consolidation zone from 2007-2022 on the monthly charts adding to the bullish bias. Short-term traders can look to buy the stock for a target of Rs 130-165 in the next 6 months, which translates into an upside of about 50% from Rs 87 recorded on December 6.
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NLC India, part of the power generation industry, recouped losses after hitting a low back in February 2022, and a recent breakout from a 5-year consolidation zone augers well for the bulls. The stock, with a market capitalization of more than Rs 12,000 crore, hit a 52-week high of Rs 92.40 on May 4, 2022.
Recently, the stock gave a breakout from Ascending Triangle pattern, as well as the consolidation zone from 2007-2022 on the monthly charts adding to the bullish bias.
Short-term traders can look to buy the stock for a target of Rs 130-165 in the next 6 months, which translates into an upside of about 50% from Rs 87 recorded on December 6.
The stock rose more than 12% in a month and over 14% in the last 6 months.
The Relative Strength Index (RSI) is at 68.3. RSI below 30 is considered oversold, and above 70 is considered overbought, Trendlyne data showed. MACD is above its center and signal Line, a bullish indicator.
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The stock started its up move from 2.21 back in October 2000. The stock made a high of Rs 134 in December 2007, but it failed to hold on to the momentum.
The stock largely moved in a range post the breakout seen in 2007.
“The pattern formed is an Ascending triangle during the full move from 2000-2022. Recently, the stock gave Range breakouts from the consolidation zone period (2007-2022) and made a high of 88.80 accompanied by volumes,” Bharat Gala, President - Technical Research, Ventura Securities Ltd, said.
“A long period range breakouts may attract fresh buyers in the stock, and the stock seems to be poised for a fast upmove. The VORTEX, WILLIAM % R & MACD, indicators suggest a possible firm uptrend,” he said.
A Vortex indicator is used to spot trend reversals and confirm the trend, while William % R reflects the level of close relative to the high–low range of a given period of time.
“The possible targets are 130-165 in the next 6 months. If the stock price corrects downwards, the buy levels are 82-77-74-69-67. A stop loss to be observed in the trade is 63,” recommends Gala.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
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