Top stock to watch out for: Siemens Ltd
In the first hour of Tuesday’s trading session, the stock has surged nearly 3%.
Siemens Limited is a multinational company engaged in the manufacture of electric motors, generators, transformers and electricity distribution and control apparatus; general-purpose machinery; electrical signalling, safety, or traffic-control equipment etc. It is a large cap company with a market capitalization of about Rs 86000 crore. It is one of the leading company in its sector and has reported good fundamental numbers in the last few years.
In the first hour of Tuesday’s trading session, the stock has surged nearly 3%. It decisively broke its horizontal resistance zone of Rs 2450-2460 and hit the day’s high at Rs 2498. Such a strong price structure is accompanied by larger-than-average volume, which indicates growing market interest in the stock. It found good support near 2200 and has rallied about 12% in nine trading sessions. The bullish sentiment can be validated by several technical parameters. The RSI is placed just below 60 and indicates strong strength in the stock, while the MACD line is well above the signal line and zero line. Its histogram is rising steadily above its prior high, suggesting a strong upside of the stock. The Mansfield Relative Strength line is placed in the bullish one and indicates outperformance of the stock against the broader market. Moreover, Daryl Guppy’s multiple moving averages signal the bullish momentum of the stock.
In the past one month, the stock has delivered over 7% returns against negative 1% returns of Nifty. Such buying interest despite overall bad sentiment in the market attracts many traders as they look to build long positions in the stock.
Considering its strong price action and above-average volume, backed by strong technical parameters, we can expect the stock to continue its momentum on the higher side. Any closing above 2500 will further see the stock inching closer towards its all-time high of Rs 2576.
Start Investing Now!
Open Free Demat Account in 5 mins