Top buzzing stock: Schneider Electric Infrastructure Ltd

The stock has given a breakout from its downward-sloping trendline with heavy volume.

Schneider Electric Infrastructure Limited is engaged in the business relating to products and systems for electricity distribution, which include transformers, equipment, components, auto-reclosures and automation. It has a market capitalization of about Rs 3400 crore and is one of the strong smallcap companies in its sector. The stock is in limelight due to its strong bullish price action.

The stock of SCHNEIDER is bullish lately and has surged nearly 10%. With this, it has given a breakout from its downward-sloping trendline with heavy volume. Also, the stock is now approaching its 52-week high level of Rs 147.15. It is in a strong uptrend, as justified by its moving averages, which are all pointing upwards the difference between its current price and 20-DMA is over 15% and indicates strong momentum of the stock. Moreover, the volume is found to be greater than the 10-day, 30-day and 50-day average volume, indicating strong buying interest in the stock.

Along with its strong price structure, several technical indicators point towards the bullishness of the stock. The 14-period daily RSI (73.61) is trending upwards and above its prior swing high. Moreover, the +DMI is well above the -DMI and ADX (34.10) indicate a strong uptrend of the stock. The MACD line has bounced from the signal line and indicates strong momentum. Also, the OBV shows similar bullish characteristics from the volume’s perspective. The Elder Impulse System and KST maintain their buy signal.

In the past, the stock has performed exceptionally well. It has delivered about 36% returns to its shareholders on a YTD basis. Moreover, its one-month performance stands at 23% and has outperformed most of its peers. Considering the above points, the stock is expected to trade higher in the coming days. It has the potential to test its 52-week high level of Rs 147, followed by Rs 155 in the short to medium term. It presents a good opportunity for swing trading and they can expect good gains from this stock as validated by technical analysis.