In the last trading session of the week, Nifty opened gap up and traded higher but bulls were unable hold this gap and lost all gains to trade around day’s low, below the closing of last trading session. Despite the negativity, one stock from automobile and auto components sector, grabbed investors’ attention on D-street, which outperformed its peers, as it surged almost 8% in initial hours of trading session.
The stock is Remsons Industries Limited was established in 1971 by Vishwa Prakash Harlalka. It engaged in the manufacturing of automotive components parts and all its products. It supplies products to automotive, agricultural, construction, railways and lighting industries like auto control cables, flexible shafts, Gear shift systems, push pull cables and parking brake mechanism. It exports majorly to the UK, Europe, North American, Brazil, Mexico and SAARC countries.
Technically on weekly charts in the first week of July 2021, it made new life time high of Rs 314.7, from there it lost momentum and started retracing its previous rally in which it almost touched the 61.8% retracement ratio and made low of Rs 157.4 by making lower highs and lower lows. After this it again tried to reclaim the lifetime high but unfortunately it witnessed selling pressure on higher levels and entered in consolidation. Now it is trading just below the trendline drawn from these 2 highs.
On daily charts, stock registered a breakout from trend reversal price pattern as it rallied more than 18% higher in the last trading session and closed above the neckline of the pattern drawn from the highs of January 27, 2023 and April 10, 2023 with strong volumes which is above 100 day’s moving average.
Today also it opened gap up with strong volumes but somehow it witnessed selling pressure on higher levels and lost the gains to trade around Rs 255 and any closing above Rs 300 will confirm the breakout on monthly, weekly and daily charts which makes it attractive for high momentum trading and long-term investing.
