NCC shares gained 5 percent, it biggest single-day gain in two months, on March 8 despite correction and volatility in the equity benchmarks and broader markets.
The stock has seen a breakout of horizontal resistance trendline adjoining highs of December 14 and January 16 this year. It formed a long bullish candlestick on the daily charts, with robust volumes, making higher highs and higher lows for the second consecutive session.
It has been trading above all key moving averages (50, 100 and 200 exponential moving averages), which is another positive sign.
NCC has been in an uptrend since June 2022, barring intermittent correction and consolidation, and has gained more than 86 percent.
Experts expect the momentum to continue if it holds the crucial support area of Rs 90, the closing price of March 3.
"NCC, currently quoting at 52-week high suggests a robust momentum in its stock price. This upswing, which began in June 2022, has been supported by increasing volumes, indicating significant long-term buying interest," Vidnyan Sawant, AVP - Technical Research at GEPL Capital said.
The daily and weekly RSI momentum indicators, both above the 50 mark, reinforce the strong bullish momentum in the stock. The uptrend will continue if the support of Rs 90 is held on the downside, Sawant said.
At 2.40 pm, the stock was trading at Rs 98, the highest level since February 8, 2021, up 4.7 percent from the previous day's close.
"NCC has given a strong breakout on the daily chart from an ascending triangle pattern with a sharp surge in volumes. The momentum indicator has given a positive crossover on the chart which confirms the buy signal," Kunal Shah, Senior Technical & Derivative analyst at LKP Securities said.
"The stock has constantly taken support around its 50-day EMA (Rs 89.74) which will act as a cushion for the bulls," he added.
Disclaimer: The views and investment tips expressed by experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
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