Top buzzing stock: Bombay Stock Exchange Limited

The stock of BSE is bullish and has risen over 5% in the initial hours of Friday's trading session.

After a correction of about 20% since its all-time high, the stock consolidated and formed a base near its 50-DMA. In the past two trading sessions, the stock received strong buying interest and has jumped about 10%. During this period, above-average volumes were recorded which were greater than 10-day, 30-day and 50-day average volumes. Moreover, it has also crossed above its 20-DMA and is now trading above all the key moving averages. Interestingly, the stock is seen forming a bullish engulfing pattern on the weekly timeframe, which is an early sign of reversal.

The 14-period daily RSI (58.62) has crossed above its prior swing high and shows bullishness. The MACD is about to signal a buy while the Elder Impulse System has already indicated a fresh buy in the stock. Interestingly, the On Balance Volume (OBV) has risen swiftly and indicates a sharp rise in strength from the volume’s perspective. The +DMI is well above the -DMI and indicates strong trend strength. As per the Guppy’s Multiple Moving Averages (GMMA), the stock has a bullish nature. It is about 3.5% above the 20-DMA and 53% above its 200-DMA.

In the past, the stock has performed exceptionally well. On a YTD basis, it has increased the shareholder’s wealth by 42% and has also outperformed the broader market by a huge margin. Considering the strong price structure, and bullish technical parameters supported by above-average volumes, the stock is expected to trade higher in the coming days. It has the potential to test its all-time high level of Rs 1046.65 in the short to medium term. Moreover, it presents a good opportunity for swing trading. Traders can expect good gains in the near term in this stock as per the technical analysis.

Also read: Multibagger alert: Investment of Rs 1 lakh in this industrial gases company in 2020 would have turned to Rs 6.54 lakh today!