Top buzzing stock: Jamna Auto Industries Limited

The stock of JAMNAAUTO has been extremely bullish lately and has gained over 5% on Monday’s trading session. 

Jamna Auto Industries Limited is a provider of automotive suspension solutions for commercial vehicles. It is a smallcap company with a market capital of about Rs 4800 crores. The stock is in focus for its strong uptrend.  

The stock of JAMNAAUTO is extremely bullish lately and has gained over 5% on Monday’s trading session. The stock witnessed a spectacular rally of about 22% since its recent swing low of Rs 97.55 in just seven trading sessions, thus demonstrating strong bullish momentum. With this, the stock has crossed above its prior swing high of Rs 119.30. On the technical chart, it has given a breakout from its downward sloping trendline with heavy volumes. The volume has been found to be greater than the 10-day and 30-day average volume and shows increasing market participation.   

The 14-period daily RSI (64.63) has crossed above its prior swing high and indicates good strength. The MACD line is above the signal line and indicates upside momentum, Interestingly, the On Balance Volume (OBV) is at its peak and indicates strong strength from volume’s perspective. The TSI and KST indicators, as well as Elder Impulse system, have a bullish view towards this stock. The stock trades above all its key short-term and long-term moving averages. It is above its 20-DMA by about 8% and 17% above its 200-DMA. Moreover, the moving averages indicate bullishness.   

On a YTD basis, the stock is 15% up and has outperformed the broader indices. The Auto and auto ancillaries have a high demand in India and with the company’s strong growing business, the stock is expected to do well. Considering the above points, it has the potential to test its all-time high level of Rs 125 in the short to medium term. Moreover, it presents a good opportunity for swing trading and traders mustn’t miss out on this stock.