Symphony shares climbed nearly 5 percent on February 21, after the breakout of the last eight-day consolidation ranges with an upward bias. The rally could be due to the approaching summer season, which generally increases demand for its air cooler products.
The stock closed with 4.7 percent gains on the NSE at Rs 1,110, the highest closing level since May 6, 2022. It has formed a long bullish candlestick pattern on the daily charts with robust volumes.
The rally on Tuesday was strong as the stock broke out of an eight-day-long consolidation. It had risen nearly 9 percent to Rs 1,048 on February 8 prior to this consolidation. In fact, since February 8, the stock has been trading with momentum as it has seen a big expansion on the upper side of Bollinger's band.
Further, since the same day, it has consistently taken support from the nine-day EMA (exponential moving average) and remained above all medium-long-term moving averages (the 50, 100, and 200-day EMAs), which is a positive sign.
Furthermore, on February 8, a large breakout occurred of a long downward sloping resistance trendline adjoining highs of April 11, 2022, and January 11, this year, and it has remained above the same level to this day.
"Symphony was trading in a downwards sloping triangle-like pattern on the weekly timeframe since 2018 and currently is trading near its resistance trendline, and the breakout will be confirmed only if the scrip closes above Rs 1,140 on a weekly closing basis," Mitesh Karwa, Research Analyst at Bonanza Portfolio, said.
On the indicator front, he feels the super trend indicator is indicating bullishness; the 200-day EMA is at Rs 1,025 on the weekly timeframe, and the stock is trading comfortably above it; and the RSI is at 79, indicating that it is in overbought territory.
Buying in the stock can be initiated above Rs 1,140 (weekly closing basis) with a stop-loss of Rs 950 and a target of Rs 1,450, Karwa advised.
Vidnyan Sawant, AVP - Technical Research at GEPL Capital said the stock has a strong support zone near Rs 800 levels and in recent times also, the stock respected that support and bounced back.
The stock is consistently sustaining above its 20-week SMA for the last two months indicating a positive undertone of the stock, Sawant said.
The stock has immediate resistance placed at Rs 1,270 - Rs 1,350 levels and the support zone is placed at Rs 1,000 - Rs 880 for the short to medium term, Sawant said.
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