Stock to watch: A bullish engulfing pattern is formed in Inox Wind

The shares of Inox wind gained by more than 3% in the Wednesday trading session to close at Rs 140.45 per share. The share price of Inox Wind jumped higher by more than 22% in one month.

On Wednesday a bullish engulfing pattern was formed with the stock closing almost at its day’s high. The positive closing and the bullish engulfing pattern in Inox Wind indicates bullishness in the counter. The RSI is above 70 and the stock has risen with a spurt in volume on Wednesday.

The technical indicators point towards upside movement in the counter.

Inox winds is struggling to report profits even though it has managed to narrow its losses as per the latest quarterly results.

Recently, the company has announced that its arm has inked a share purchase agreement to sell its total equity stake in six firms to a wholly-owned subsidiary named Resco Global Wind Services.

The shares of Inox Wind have jumped higher by more than 288% in one year.

The energy company shares have been outperforming on bourses lately. There is a demand for clean energy across geographies and the sentiment is positive for clean energy providers. Inox Wind is the clear beneficiary of such positive change in the sentiment.

BSE Power index is up by over 88% in past one year when compared to the 39% gains in the BSE Sensex in a similar period.

Some of the other stocks (BSE 500) that formed a bullish engulfing pattern on Wednesday are Grindwell Norton, Sadbhav Engineering, Schaeffler India, Repco Homes, APL Apollo Tubes, DCB Bank, Century Textiles, Muthoot Finance, Vedanta, LIC Housing Finance, Indus Towers, Tech Mahindra and Mindtree.

From the smallcap space, we have Precision Wires, Deep Polymers, Cineline India, Sequent Scientific, Hindustan Tin Works, Renuka Sugars and Dhampur Sugar Mills forming a bullish engulfing pattern. These shares along with Inox Wind may be viewed with a bullish perspective in the Thursday trading session.