Top buzzing stock: Ujjivan Financial Services Ltd.
UJJIVAN has soared nearly 5% and has attracted huge buying interest.
Ujjivan is a Microfinance Institution serving the economically active urban and semi-urban class. The NBFC is a smallcap company with the market capital of Rs 1350 crores. Over the years, the company has posted decent results and foreign institutional investors have continued to increase their stake over the last few quarters.
The Indian indices on Friday 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 a bearish shape. However, some stocks showed amazing buying interest at lower levels, and have gained a strong momentum despite bleeding market. One such stock is Ujjivan Financial Services, which has soared about 5%. Due to this movement, the stock has attracted investors and medium risk traders.
The stock of UJJIVAN is currently trading at day’s high of Rs 111.50. It continued to surge higher as it opened has taken out its prior day’s high. Moreover, the stock has formed a strong bullish candle on the weekly timeframe, which follows the hammer candle. Thus, the stock seems to bottom out and is gaining momentum on the upside. This strong price action is accompanied by above average volume, which is greater than 10-day and 30-day average volume. The 14-period daily RSI is rising steadily and shows improved strength. Along with this, the MACD has given a bullish crossover. The On Balance Volume (OBV) has crossed over its prior high and indicates good momentum from volumes point of view.
The stock has the potential to provide good returns in the medium to long term once the market is stabilized. Medium-term traders and investors can consider this stock is in their portfolio, keeping the positions light.
In times of uncertainty, it is a sensible approach to remain invested in such resilient stocks as they protect investors' wealth and provide cushioning to the portfolio.
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