Top buzzing stock: Graphite India

The stock is displaying strong bullishness on Thursday and has surged over 2%.

Graphite India Limited is a midcap company, engaged in the manufacturing of graphite electrodes, graphite equipment’s, steel, glass-reinforced plastic (GRP) pipes and generation of hydel power. With a market capitalization of about Rs 10500 crore, it is one of the promising company in its sector. The company has generated higher revenue than the industry average revenue over the last five years, thus showcasing its strong sales and order book.

Being such a strong growth company, the mutual fund houses have been increasing the stake in the company in the past few quarters. The promoters hold a significant stake of about 65% of the company while the institutions hold about 13% of the company’s stake. The rest is held by the HNIs and public.

In the last one month, the stock has gained about 5% despite the choppy sentiment of the market. Moreover, it has delivered decent returns of about 20% to its shareholders in one year. It has outperformed the broader market and most of its peers during the period.

The stock is displaying strong bullishness on Thursday and has surged over 2%. With this, the stock has taken out its previous day’s high. It found a base near its 20-DMA and has bounced sharply from there. The RSI is just below 60 and above its prior swing high. Moreover, the Elder Impulse System has given a fresh buy signal. According to Darryl Guppy’s multiple moving averages, the stock is showing a bullish sentiment. The On Balance Volume (OBV) is on a rise, highlighting the increasing participation of buyers in the stock. On the hourly timeframe, we observe that the initial hour of the trade has recorded greater volume than the 30-period and 50-period average volume.

Such strong price action, supported by the technically bullish view and increasing volume, the stock has attracted buying interest from the market participants. The stock is widely expected to deliver decent returns in the short to medium term as technical analysis validates the point.

Also read: M&M beats market estimates as Q3 net profit revs up 57%