Sharda Cropchem shares rallied more than 11 percent on June 6 and hit the highest level in July 2022, forming a robust bullish candlestick pattern on the daily charts after the breakout of several months-long consolidation.
The trading volume on Tuesday, too, was strong and was the highest in a single day in the current calendar year.
The stock has seen a decisive breakout of downward sloping resistance trendline adjoining highs of January 25 and May 15, which is a positive sign, making higher highs and higher lows formation for the fifth consecutive session.
Also, there is a golden crossover today with the 50-day EMA (exponential moving average) moving above 200-day EMA, with an expansion of the Bollinger band, which is generally considered as a strong sign of momentum.
Hence, experts expect the current momentum with significantly higher volumes can take the stock of Sharda Cropchem above Rs 600 in coming sessions.
"The stock has confirmed a massive range breakout above the 530 mark. The theoretical target for the breakout seems to be around Rs 600 – 625," Mehul Kothari, Head of Technical Research at Anand Rathi said.
Traders can hold their long position in the stock with a revised stop-loss of Rs 520, he advised.
After the correction experienced since June 2022, Sharda Cropchem has successfully formed a strong support base within the range of Rs 415 to 530. This range has exhibited signs of being breached, suggesting the initiation of an upward trend, Vidnyan Sawant, AVP - Technical Research at GEPL Capital said.
Presently, he believes that the stock appears to be on an upward trajectory, contingent upon the preservation of Rs 530 level during closing periods.
Moreover, it is noteworthy that the 720 levels hold significance as a key level on the higher end, Sawant said.
The stock was trading at Rs 558 on the NSE, rising 11.2 percent over the previous close.
Disclaimer: The views and investment tips expressed by investment 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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