High Momentum stock: Shankara Building Products Ltd

On Friday, the stock rose over 2% and trades at day’s high at RS 637.

The stock of Shankara Building Products is extremely bullish for a week and has surged over 25% in the last five trading sessions. With such strong momentum, the stock has taken out prior swing highs decisively. On Friday, the stock rose over 2% and trades at day’s high at RS 637. Moreover, the past five days have observed huge volumes, highlighting larger participation in the stock. The stock is well above all the key short term and long term moving averages. The difference between its 20-Day short term moving average is above 15% which shows strong momentum of the stock on the higher side. The 14-period daily RSI has entered the super bullish territory. Along with this, the trend indicator ADX is rising steeply above 26 and shows strong trend strength of the stock. The MACD histogram has risen above its prior high. Other momentum oscillators highlight the bullish sentiment of the stock.

Interestingly, the stock has formed big bullish candles over the period, which signifies the buyer’s interest. It is also one of the top-performing stocks this week. The stock shows no signs of weakness on the technical chart, and it is expected that the stock shall test its 52-weel high level of Rs 683.65 in times to come.

In the past one year, the stock has delivered about 55% returns to its shareholders and outperformed the broader market and its peers. Moreover, the stock is quite attractive for trading and high-risk traders have a perfect opportunity to ride its momentum. Traders can expect a decent profit in the short period from this stock.

Shankara Infrastructure Materials Limited is a manufacturer, distributor and retailer of steel tubes, steel and allied building products. It manufactures cold-rolled strips, pre-galvanized strips, precision steel tubes, hot-rolled pipes, sections. With a market capitalization of Rs 1500 crore, it is one of the most promising smallcap company in its sector.

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