CAMS Shares Up 25% From 52-Week Low! Now Watch these Resistance Zones

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The Indian markets are more or less trading in a range, with the benchmark Nifty 50 index hovering around 16,395, gaining 0.25% and the Sensex is up 0.28% to 55,052, by 2:25 PM IST. However, in the midst of a seesaw market, a stock that has caught investors’ attention is Computer Age Management Services Lt (BO: COMU ), or simply CAMS. 

CAMS shares have had a rough time since September last year when the stock marked an all-time high of INR 4,067.4, delivering a massive peak return of almost 186% from the listing price of INR 1,420 in less than a year. Since the all-time high, shares of CAMS have only been seeing a southward direction, until a few days back.

The fall from the 52-week high resulted in a massive wealth erosion of around 50% as the stock tumbled to a 52-week low of INR 2,037.15 which was marked on 26 May 2022. Throughout the fall, investors capitalized on every rally to make an exit while every new support level also kept on breaking as the supply of CAMS shares outstripped demand around support levels.

However, recently, investors have been taking a special liking towards CAMS shares, after a 50% dip. The value investors are now seemingly adding CAMS to their portfolios which has resulted in a significant rally from the lows. As bulls kept on overpowering bears, the stock surged around 25% from the 52-week lows to the current price of INR 2,555.

CAMS shares

Image Description: Daily chart of CAMS shares with resistance levels

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Today’s rally has also materialised into a strong breakout above the 6-month long falling trendline which also portrays a bullish picture. Looking at the current strength of the rally of about 25% coupled with a trendline breakout signifies a change in the trend from downward to upward. With that being said, a one-way straight rally should not be expected.

All the peaks during the downtrend where the selling started to outstrip demand would now act as a resistance level. Investors who were not able to get out during those rallies would now try to make an exit once they get those prices back on the chart. 

The share price of CAMS would face the nearest resistance at INR 2,680 - INR 2,685, which is the nearest peak of the prior downtrend. Broadly, there seem to be 3 important resistance zones for the stock to cross before it can look for the previous highs again. 

It is also to be noted that if the current low of INR 2,037.15 gets taken out, the uptrend may get negated for the time being but a fall till INR 2,000 is expected to meet a lot of demand. Below this psychological level, the primary downtrend might accelerate. 

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