Top buzzing stock: Westlife Development
Westlife Development is a midcap company, engaged in letting out property and trading in goods.
The stock of WESTLIFE has surged over 2% today despite strong weakness in the market on Thursday. A global sell-off has eroded investors’ wealth who have invested in midcap and smallcap stocks. Nifty Midcap and Nifty Smallcap indices are down over 2% each on Thursday. However, some stocks witnessed strong buying interest at lower levels and one of them is WESTLIFE.
The stock had a correction by about 18% since its recent swing high and had fallen towards the level of Rs 400. However, it witnessed strong buying at this level and the stock has surged over 10% from its intraday low today. From the past two trading sessions, the stock has bounced back from lower levels and recorded above average volumes.
With such recovery, the technical parameters are pointing towards improving strength in the stock. The 14-period daily RSI has jumped to 37 and points northwards, while the MACD line and signal line are converging and may indicate a bullish crossover soon. Moreover, the On Balance Volume (OBV) has also risen and indicates improvement strength from the volume’s perspective. The Elder Impulse System has a neutral view, while KST and TSI indicators are improving.
The stock trades below all the key short term and long term moving averages. Moreover, it has fallen over 22% on a YTD basis, and has underperformed the broader index. Interestingly, the stock is quite oversold and traders are betting on the stock to go up. The price action does not indicate a drastic fall from here on and shows a favourable risk-reward ratio. A move above the level of Rs 450 shall confirm a short term uptrend and the stock can test the level so Rs 475 and beyond. Traders interested in this stock can include it in their portfolio for further tracking of this stock.
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