Trending stock below Rs 200: Welspun Corp Ltd

The stock of WELSPUNCORP has surged over 6% on Friday.

Welspun Corp Limited is a smallcap company, engaged in the business of production and coating of submerged arc welded pipes, hot rolled steel plates and coils, and power generation. With a market capitalization of about Rs 4650 crore, it is one of the strong growing company in its sector.

The stock of WELSPUNCORP surged over 6% on Friday. After a strong gap-up opening, the stock continued to trade higher and formed a bullish bar on the technical chart. With this, it has crossed above its 50-DMA and 100-DMA. It had been in a correction mode and had corrected about 27% since its 52-week high. However, it has found strong support at the level of Rs 160, which also happens to be its 200-DMA level. It received strong buying interest and has jumped about 12% in just two trading sessions.

The technical parameters indicate a neutral to bullish view of the stock. The 14-period daily RSI (42.96) is pointing northward and indicates an improved strength in the stock. The negative histogram of MACD is receding, which indicates a slowdown of the downtrend. The On Balance Volume (OBV) is nearing its high and indicates an improvement in strength from the volume’s point of view. The Elder Impulse system indicates a neutral stance while KST and KST indicators show an improvement.

On a YTD basis, the stock has been flat while the broader index is struggling with negative returns. The stock has already corrected a lot and has been oversold. It has shown signs of reversal as per the price action. Thus, the stock is expected to perform well in short term. A rise above the 20-exponential MA level of Rs 190 can bring positivity to the stock and it can rise towards the level of Rs 200 and beyond. Keep a trach of this stock by including it in your watchlist!