Top buzzing stock: Coal India
The stock of Coal India has soared over 2% on Monday and is one of the top gainers among the Nifty stocks.
Coal India Limited (CIL) is engaged in the production and sale of coal. It serves power to steel sectors, as well as cement, fertilizer, brick and kilns industries. The stock is in limelight for its recent up-move and strong bullishness.
The stock of Coal India has soared over 2% on Monday and is one of the top gainers among the Nifty stocks. The stock has witnessed a sharp recovery from the day’s low of 160.65 and is trading at a day’s high. Since the prior swing low of Rs 149, the stock has gained over 12% in just two trading sessions, demonstrating strong buying interest at lower levels. With today’s strong price action, the stock has surged above all its key short term and long term moving averages.
As per the Fibonacci retracement levels, the stock has taken out its 78.6% level with heavier volumes. The RSI has also jumped over 55 and indicates improved strength in the stock. The Elder Impulse System has signalled a fresh buy. Moreover, The OBV has marked a new high and hints towards a strong uptrend. Usually, OBV is regarded as a leading indicator and prices usually follow the OBV. The other momentum oscillators and technical indicators also indicate bullishness of the stock. In the past few days, the stock has recorded above-average volume, which highlights larger participation in the stock.
On YTD basis, the stock performed exceptionally well and has gained over 14%. It has outperformed the sector and most of its peers during the period. This shows the strong uptrend of the stock in the short term. Positional traders can consider this stock for short term trading and can expect decent profits as strong price action and technical parameters validate the bullish bias of the stock. The 170-level happens to be near term resistance, which is expected to be taken out considering the strong momentum the stock possess.
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