This stock has zoomed nearly 50% in two weeks! Do you own it?

Today, the stock has soared another 6% during the initial hours of Wednesday’s trading session.

The stock of Elgi Equipments has surged nearly 50% from its recent swing low of Rs 248.70 in just thirteen trading sessions. Today, the stock has soared another 6% during the initial hours of Wednesday’s trading session. On the technical chart, the stock has made a strong V-shaped recovery on the daily timeframe and has surged above its prior swing high of Rs 360.

The rally can be attributed to stellar results it posted two weeks back. Profit after tax stood at Rs 178 crore as against Rs 102 crore last year in the same quarter. The positive management has boosted investors’ confidence and the stock has soared by over 50%.

As per the technical parameters, the 14-period daily RSI (64.20) has jumped into the bullish territory and is above its prior swing high. Price and RSI, both rising above their respective prior swing highs is a sign of bullishness. Meanwhile, the ADX points northwards, indicating an uptrend. The KST and TSI indicators maintain bullishness. From volumes of view, the stock has strong strength, as indicated by the On Balance Volume. The stock trades above all its key moving averages. It is about 14% above its 20-DMA and 30% above its 200-DMA and all the moving varies indicate bullishness.

On a YTD basis, the stock has generated over 20% returns as against a negative 6% of Nifty 500 index. With such strong bullishness, the stock is expected to trade higher in times to come. It has the potential to test the levels of Rs 400, followed by an all-time high level of Rs 425 in the short to medium term. It presents a good opportunity for swing trading as per the technical analysis. Traders can include this stock in their watchlist to track further development in the stock.

Elgi Equipments is a diversified machinery products manufacturer and has applications across various industries like food processing, pharmaceutical, automotive garages etc.