🔥 Premium AI-powered Stock Picks from InvestingPro Now up to 50% OffCLAIM SALE

Watchlist: Stock Jumps 7%, Volume Surges Over 400%!

Published 24-05-2023, 03:57 pm
NBCC
-

Despite a weak trading session, many stocks ended in the deep green and NBCC (India) (NS:NBCC) is amongst such counters. The company is engaged in providing project management consultancy, engineering procurement & construction, and real estate development, having a market capitalization of INR 7,245 crores.

Today, the share price of NBCC rallied 7.5% to INR 43.3 and closed at the highest level since mid-February 2022. This 1-year high closing and that too during a red trading session is depicting the good relative strength of the counter. Although the rally had been going on since the stock bottomed out around INR 31 on 28 March 2023, today’s closing is further setting it up for a big move.

Image Description: Daily chart of NBCC (India) with volume bars at the bottom

Image Source: Investing.com

The supply zone of INR 43 - INR 43.75 is quite a strong one which had been keeping the stock from rising for over a year now. Traders can also see many intraday spikes in this zone but none of the time, the stock was able to withstand the selling pressure and turned from there on every instance. However, today’s closing in this zone is representing a change in the demand-supply equation which might be an early warning of a resistance break this time.

Today’s closing is also more important as the stock has also witnessed a sharp spike in investors’ demand. By the closing, the NSE recorded a total volume of 39.2 million shares, which is the highest one-day figure in over 6 months and higher by 485% over the 10-day average of 6.69 million shares. Traders can keep the stock on the watchlist and as soon as NBCC (India) shares start to move above INR 43.75, a long opportunity can be exploited.

This combined volume and price action is preparing the stock for strong upside potential. The nearest level (above the resistance of INR 43.75) to which the stock can travel is around INR 48, which can provide a quick swing trade to traders. A stop loss can be maintained below the nearest swing low of 40, giving the whole trade a risk-to-reward ratio of around 1:1.

Read More: 2 Breakout Shares to Put on Watchlist for Next Week!

Latest comments

Loading next article…
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.