Top buzzing stock: Hikal Limited

Despite weakness across the global and local front, this stock has managed to gain attention by surging over 16% in the last two days.

On Friday, the stock has soared by nearly 4% and is one of the top gainers from the broader universe of Nifty 500. After hitting its prior swing high of Rs 456, the stock saw a correction of about 18% since then. However, it witnessed strong buying interest at lower levels, which led to a rise of about 16%. In the past two days, the volumes remain elevated and were greater than the 10-day, 30-day and 50-day average volume. With this, it has also crossed above its 20-DMA, 50-DMA and 100-DMA.

The 14-period daily RSI (61) indices an improved strength in the stock. Meanwhile, the MACD has signalled a bullish crossover. The OBV has hit a new peak and indicates increasing strength from the volume’s point of view. The +DMI is well above the -DMI and demonstrates an upmove. Moreover, The Elder impulse system indicates a buy signal, while the KST and TSI indicators maintain the bullish view for the stock.

Despite falling over 16% on a YTD basis, the stock has shown improvement in the past few days and indicates a possible uptrend. The stock possesses strong momentum and thus, it is expected to trade higher in the coming days. It has the potential to test its prior swing high in the short term, whereas the medium-term target is its 200-DMA, which lies at Rs 500. Also, it presents a good opportunity for swing trading. Short term traders/positional traders can expect decent gains from this stock during these turbulent market conditions as per the technical analysis.

Hikal Limited is engaged in the manufacturing of various chemical intermediates, speciality chemicals, active pharmaceutical ingredients, and contract research activities. The company offers pharmaceuticals and agrochemicals solutions.