Trendline Breakout: Stock Attempts to Recover from 52-Week Low!

  • Stock Market Analysis
Aayush Khanna/Investing.com - Investing.com

The broader markets are in a good mood, with the Nifty 50 index rallying 0.48% to 18,400, by 11:05 AM IST. After a decent time, all sectoral indices are trading in the green zone. The Nifty Smallcap 100 index gained 0.63% to 10,008 and one stock that is catching all eyeballs on the street is Computer Age Management Services Lt (BO: COMU ) (CAMS).

CAMS is a small-cap diversified financial services company that provides investor services, distributor services and asset management companies (AMC) services, having a market capitalization of INR 10,459 crores and trades at a TTM P/E ratio of 36.67. It ended FY23 with a record revenue of INR 998.64 crores, over which it was able to clock a net profit of INR 285.24 crores, translating into a high-profit margin of 28.56%. As per the recent filing, FIIs ramped up their stake to 35% by March 2023, which is their highest stake in over a year.

Image Description: Daily chart of Computer Age Management Services with volume bars at the bottom

Image Source: Investing.com

The stock is now looking great on the technical front. It has been rising for the third straight session and is up 2.1% to INR 2,180, surging past a falling trendline resistance of INR 2,175. This resistance had been keeping the stock from rising for the last 7 sessions and now as the stock is clearing this resistance, traders can expect a good upside potential.

Another factor that might work in favor of bulls is the lower levels at which the stock is currently trading. It is attempting to rise from the 52-week low levels, marked in March 2023. Since, then the stock has not been able to deliver a noticeable up move, partly thanks to the above-mentioned trendline resistance. Now, as the hurdle seems to be getting out of the way, traders can look for long opportunities in this counter.

The first level to eye for is around INR 2,265, which is around the next resistance level. Above this hurdle, the next level of INR 2,350 can be watched out for. Also, if possible, traders should wait for a closing above INR 2,175 before initiating a long trade.

Read More: 3 Stocks Paying Dividends Next Week!

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  • Rohit Rohilla @Rohit Rohilla
    Thanks Aayush Gr8
    Like 1
  • namami ghosh @namami ghosh
    excellent💯👍👏
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    • Aayush Khanna @Aayush Khanna
      Thanks, Namami
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      • Comment Guidelines

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  • Sanjay Kr Jain @Sanjay Kr Jain
    Your reviews and posts are superb. Can you pls post view on commodities like Gold and Copper
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    • Aayush Khanna @Aayush Khanna
      Sure, If I find something interesting in commodities, I'll cover it.
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      • Comment Guidelines

      We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

      • Enrich the conversation
      • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
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      •  Use standard writing style. Include punctuation and upper and lower cases.
      • NOTE: Spam and/or promotional messages and links within a comment will be removed
      • Avoid profanity, slander or personal attacks directed at an author or another user.
      • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
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