Just like there is a sunrise after the darkness, the Indian benchmark indices have witnessed a V-shaped recovery on Monday after a crash on Friday. The Nifty has reclaimed its 18,200 mark (up by 0.89%), while Sensex is comfortably trading above the 61,600 mark (up by 0.96%).
The mood in the broader markets is also jubilant as the Nifty Midcap and Nifty Smallcap indices have added 0.85% and 0.73%, respectively. The advance-decline ratio is also strongly in favor of the bulls. As a result, there are many stocks that are witnessing breakouts. However, one stock in particular that is gaining traction of market participants is Foseco India Ltd.
What Foseco does?
Foseco develops and manufactures high-technology products and solutions, predominantly for supply to the foundry casting industries. Over the years, the Company has built the brand equity of its products through technology leadership, reliability and service.
Check Foseco India Share Price
Breakout of Triangular Pattern backed by strong volume
On Monday, the stock jumped almost 5% in the first half of the trading session and with this strong up-move, the stock has logged a resolute breakout from the past month and a-half month-long consolidation which has taken a sharp of triangular pattern, signaling the resumption of up-move and offers fresh entry opportunity. What’s more striking is the fact that the stock has witnessed a breakout on the back of the robust volume. The stock in the first couple of hours of trading has recorded a volume of over 10,000 shares which is greater than the 10 and 30-days average volume.
Considering the stock is trading at a fresh all-time high, it is trading above all its key short- and long-term moving averages. Interestingly, all the moving averages are trending in an upward direction and all are in the desired sequence, which bodes well for the overall structure of the stock.
The 14-period daily RSI has marked a fresh swing high and it is in a rising trajectory and above the 60-level, which is positive for the stock. The daily MACD is pointing northward while sustaining above its nine period average, thus validating positive bias in the stock.
The stock has delivered robust returns of nearly 163% in the last three years and thus, it has gone on to be a multi-bagger stock as it has more than doubled investors’ money in the last three years. In the short term as well, the stock has displayed a strong performance as in the last one-month the stock is up by nearly 12% and in the last one-week it is up by 9.55%. One of the most intriguing facts about the company has been maintaining a healthy dividend payout and it is almost debt free.