Stock to watch: Everest Kanto Cylinder

The stock has surged about 5% today and has locked in the upper circuit.

Everest Kanto Cylinder Limited is engaged in the manufacturing of high-pressure gas cylinders such as industrial gas cylinders, compressed natural gas (CNG) cylinders, CNG cylinders etc. which have a range of applications including defence. It is a smallcap company with a market capital of Rs 2621 crore. The company has reported good profits in the past few years and is one of the promising company in its sector. Most of the company’s take is held by the promotors (about 67%) while the remaining is held by the High Networth Investors (HNIs) and the public.

The stock has surged about 5% today and has locked in the upper circuit. Strong buying momentum has been seen today as described by above-average volume recorded today. The volume is greater than the 10-day and 30-day average volume and indicates larger participation in the stock by the market participants.

The stock registered a low of about Rs 215 on Tuesday and has gained about 8.3% in just two trading sessions. Thus, the level of 215 happens to be an important support zone for the stock. The RSI has also jumped to 47 and has broken out from its falling trendline. The Elder Impulse system has given a buy signal while the Mansfield Relative Strength indicator suggests outperformance of the stock as against the broader market. The other momentum indicators and oscillators hint towards slight bullishness of the stock.

In the past one year, the stock has delivered about 259% returns to its shareholders and has outperformance its sector and peers by a huge margin. The stock is in a strong uptrend in the medium term, and it is expected to continue its momentum for days to come. The immense buying interest in the stock has attracted the traders and we can see it soaring higher in the near term.

Also read: List of Penny Stocks: Penny Stocks Those Were Locked in the Upper Circuit on Wednesday, February 16