Top buzzing stock: Bluestar Company

The stock of BLUESTARCO is soared over 4% on Tuesday.

Blue Star Limited is an air-conditioning and commercial refrigeration company and conducts various activities, such as electrical and fire-fighting services. With a market capitalization of about Rs 10000 crore, it is one of the strongest company in its sector. The stock is in focus because of its strong price action today.

The stock of BLUESTARCO is soared over 4% on Tuesday. On the technical chart, the stock has formed a sizable bullish candle and trades near its day’s high of Rs 1036.90. Over the past few days, the stock formed a base near the level of Rs 980 and consolidated with average volume. However, with today’s price action, the stock has broken out from its short term resistance of Rs 1000 and continued to trade higher. Also, the stock has recorded above-average volume, which demonstrates larger trading activity.

Along with its strong price action, most of the technical parameters have pointed towards bullishness. The 14-period daily RSI jumped to 58 from 45 and is above its prior swing high. Thus, the rising RSI and rising price is a sign of bullishness. Moreover, the MACD has given a bullish crossover last trading session. Interferingly, the On Balance Volume (OBV) has signalled a strong strength in the stock from the volume’s perspective. After today’s price action, the stock trades above all the key short and long term moving averages.

Despite the stock delivering nominal returns in the short to medium term, today’s price action can be an early sign of a strong uptrend. It has received strong buying interest after a lot of time and thus, has the strong potential to trade higher in the coming days. The stock can test the levels of Rs 1075, followed by Rs 1100 in short to medium term. Positional traders can expect decent gains.

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