Technical Analysis: Astra Micro gives channel breakout

Technical Analysis: Astra Micro gives channel breakout

by 5paisa Research Team Last Updated: Dec 14, 2022 - 11:24 pm 48.3k Views
Listen icon

Astra Micro was consolidating from the past 22 trading sessions and breaks out from a consolidation phase on October 28, 2021. Read on to find out more.

Astra Microwave Products Ltd indulges in the business of designing, developing and manufacturing sub-systems for radiofrequency and microwave systems that are particularly used in defence, space, meteorology and telecommunications.

The company in Q1 FY22 posted a net profit of Rs 9.66 crore compared to a net loss of Rs 83 lakh that was reported in Q1 FY21. However, on a sequential basis, the stock has witnessed a 62% fall in its net profits when compared with Q4 FY21 earnings. Speaking about revenue, the company reported 23% growth in its revenue to Rs 120 crore as against Rs 97 crore in Q1 FY21.

In the last one year, this small-cap stock has soared almost 131%, outperforming the Nifty Small Cap 100 Total Returns Index (TRI) that ascended 87%. Whereas in the last one and a half year, Astra Micro jumped fourfold. Having said that, the stock has broken out from the channel on the daily charts. Even the volumes seem to be elevated signalling the strength of breakout.

Looking at the technical indicators such as Relative Strength Index (RSI), which is presently trading at 66 level which is above its 20-Day Exponential Moving Average (EMA) of 60. However, from the present consolidation phase, it is showing a negative divergence. On the other hand, Moving Average Convergence Divergence (MACD) is showing positive signs as, at the time of breakout, it witnessed a positive crossover in the positive territory.

The immediate support is placed at 214 levels, whereas the 234.35-238.30 zone would be the resistance for the stock. It is advisable to invest in stock on a pullback. In fact, in today’s trade, we do see the stock price moving down. Therefore, entering on pullback o validation makes complete sense.

At the time of writing Astra Microwave Products Ltd was trading at 225.45.

Share Market Today


How do you rate this article?

Start Investing in 5 mins*

Rs. 20 Flat Per Order | 0% Brokerage

378X91-D3

About the Author

Our research team is composed of some highly qualified research professionals, their expertise range across sectors.


Open Free Demat Account
Resend OTP
Please Enter OTP
Mobile No. belongs to

By proceeding, you agree to the T&C.

Latest News
Lokesh Machines Share Price Rose 4.48% on Arms License

Lokesh Machines share price surge by over 10% in early trading on Thursday after the announcement of receiving an Arms Licence from the Ministry of Home Affairs. The stock initially rose to a high of ₹395.00 on the BSE, marking a gain of 10.7%.

T+0 Settlement Begins Today: Here's How it Impacts You!

Starting today, India's stock market is introducing the same-day transaction settlement system known as "T+0." This system allows for transactions to be settled on the same day they oc