Top buzzing stock: NAM-INDIA

The stock of Nippon Life Asset Management Company has surged over 2% during Monday’s trading session.

The stock of Nippon Life Asset Management Company has surged over 2% during Monday’s trading session. The stock was under pressure initially but witnessed strong buying interest at the lower levels. It recovered smartly from its day’s low of Rs 309.05 and jumped nearly 4% from there. Interestingly, the stock took support at its 20-DMA, and thus, the level acted as strong support. Moreover, it has broken out from its short-term resistance zone of Rs 315-Rs 316 with heavier volumes. Since its prior swing low of Rs 283.80, the stock has gained over 12% in just six trading sessions. Interestingly, the level of Rs 283 also happens to be its 200-week MA level. Moreover, after four weeks of bearishness, the stock had formed a strong bullish candle on the weekly timeframe last week. Thus, it has confirmed a strong reversal.

The technical parameters are also in line with the stock’s bullish price structure. The 14-period daily RSI is rising and has crossed above its prior high. It has crossed above 50 and shows improvement in the stock’s strength. The MACD histogram is rising steadily and is above its prior high. The OBV indicates a positive change in the sentiment from volumes’ point of view. Moreover, the Elder Impulse System has signalled a fresh buy. The above points pretty much sum up the bullish nature of the stock.

The short-term trend of the stock is extremely bullish and has outperformed the broader market as well as most of its peers last week. The stock is likely to continue its bullish momentum for some more days. It is expected to test the levels of Rs 333 (its 50-DMA), followed by Rs 352, which is its prior swing high in the short to medium-term. The stock is an ideal candidate for swing trading, and positional traders can expect decent profits from this stock in the upcoming days.