Usha Martin zooms 16% to hit fresh record high on volume spurt

Usha Martin specialises in manufacturing of high performance wire ropes, LRPC strands, wires, pre-stressing solutions, machineries and cables.

Shares of Usha Martin surged more than 16 percent on October 11 to hit a fresh record high on account of a sharp surge in trading volumes.

So far in the day, around 3 crore shares of the company changed hands on BSE and NSE combined, compared to the one-month average trading volume of 7 lakh shares.

Usha Martin stock is currently trading above its 200-day moving average (DMA) of Rs 345.4. The 200-day DMA is used as a key indicator by traders for determining the overall trend in a particular stock.

As long as the stock is priced above the 200-day SMA on the daily time frame, it is generally considered to be an overall uptrend.

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On the daily chart, Usha Martin has formed a substantial bullish candle, signalling strong upward momentum. The stock has successfully broken out of its previous range and is showcasing robust bullish sentiment.

With the stock reaching a new all-time high, it indicates buyer dominance. This price action is backed by significant volume, reflecting increased buying interest at the current levels.

Additionally, the relative strength index (RSI) is positioned in the upper range, further supporting a positive outlook for the stock. RSI is a momentum indicator used in technical analysis. It measures the speed and magnitude of a security's recent price changes to detect overvalued or undervalued conditions in the price of that security.

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Usha Martin is a midcap firm engaged in the business of wire and wire ropes – manufacture and sale of steel wires, strands, wire ropes, cord, related accessories, wire drawing and allied machines, etc.

At 11:53 am, Usha Martin stock was locked trading 16 percent higher at Rs 426.85 on the National Stock Exchange (NSE) in the previous session. The stock has risen around 46 percent so far this year, outperforming Nifty's returns of 14 percent.

In the last one year, the counter has risen around 31 percent compared to Nifty's gain of 26 percent during this period.

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