Top Buzzing Stock: Supreme Industries

The stock has witnessed tremendous buying at lower levels and has surged about 2.5% on Tuesday.

The Indian indices on Tuesday saw a massive gap-down opening amid bad global cues. The advance-decline ratio has largely turned in the favour of bears and thus, the overall market sentiment is in bad shape. However, some stocks have turned out to be the top supporters in lifting the market. One such stock is Supreme Industries, which has attracted huge buying interest today and has gained momentum despite bad sentiment in the market. Such stocks attract the attention of the traders and become one of the top trending stock for the day.

The stock was under selling pressure for quite some days and has lost about 10% since its recent high. However, the stock has witnessed tremendous buying at lower levels and has surged about 2.5% on Tuesday. On the daily timeframe, the stock has formed a bullish engulfing candle which is a sign of reversal. With today’s surge, the stock hovers around its 20-DMA. The daily MACD has given a bullish crossover while the 14-period daily RSI has also jumped above the prior swing high. The other momentum oscillator and technical indicators also point towards the improved strength in the stock.

Today’s price action is supported by above-average volume, which is greater than 10-day and 30-day average volume. This highlights larger buying interest among the market participants. The stock is trading in the oversold region and the stock shows signs of bottoming out. Medium-term and positional traders have got an excellent opportunity to trade in such oversold stocks having favourable risk-to-reward ratio.

Supreme Industries Ltd is a midcap company, engaged in the manufacturing of plastic products, moulds, and Cross-Laminated Films. The company owns the largest plastics processors in India. With a market capital of about Rs 25000 crore, it is one of the strongest company in its sector.

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