Stock at 52-week high: Shankara Building Products

The stock has soared over 10% on Monday and has hit a fresh 52-week of Rs 752.20.

The stock of Shankara Building Products has been quite trending for the past few days. It has soared over 10% on Monday and trades at a day’s high in the final hour of the trading session. After registering a prior swing low of Rs 623.05, it has surged nearly 20% in just two trading sessions. With such strong price action, the stock has hit a fresh 52-week high of Rs 752.20.

In the past few weeks, the stock had corrected about 10% due to bad market conditions. However, the stock has received strong buying interest at lower levels, as indicated by above average volumes. The volumes were greater than the 10-day and 30-day average volume, which highlights larger participation in the stock. Along with this, several technical parameters are in line with the stock’s bullishness. The 14-period daily RSI has entered the bullish territory. Moreover, the MACD histogram has risen above its prior high. The Elder Impulse System has signalled a fresh buy. The Mansfield Relative Strength indicator displays outperformance of the stock against the broader market. Also, the On Balance Volume (OBV), which is a leading indicator in determining trend of the stock, is at its peak. Overall, the picture is quite bullish and ticks all the bullish criteria.

On YTD basis, the stock has generated over 38% returns and has outperformed the sector and most of its peers. It has witnessed a strong price action and shows no signs of halting. It is expected that the stock should continue the same momentum on the upside. Traders looking to capture such high momentum can consider this stock in their watchlist.

Shankara Building Products is established as the largest manufacturer, distributor and retailer of steel tubes, steel and allied building products in India with a wide range of applications. With a market capitalization of Rs 1685 crore, it is one of the most promising company in its sector.

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