Top Buzzing stock: Voltas

The stock of VOLTAS has soared over 5.5% on Wednesday’s trading session.

Voltas Limited is engaged in room air conditioners, contract revenue, commercial refrigeration products and sale of services. It is a midcap company having a market capital of about Rs 40000 crore. It is one of the strongest growth company in its sector.

The stock of VOLTAS has soared over 5.5% on Wednesday’s trading session. It opened with a decent gap-up and continued to gain strong upside momentum. On the technical chart, the stock has formed a strong bullish candle and has taken out its short term resistance level of Rs 1270. Since its prior swing low of Rs 1100, the stock has gained about 15% in just six trading sessions, thus demonstrating strong buying at lower levels.

Currently, the stock trades above all the key short term and long term moving averages and its price structure looks bullish.

Along with its price structure, several technical parameters are in line with stock’s bullishness. The 14-period daily RSI has entered the bullish territory, while the MACD has given a bullish crossover. Moreover, the OBV has given a breakout from its falling trendline and indicates stronger momentum from a volumes point of view. The Elder Impulse system has signalled a fresh buy. To validate this positive bias of technical indicator, the volume has been recorded above average, and is greater than 10-day and 30-day average volume from the past few days, demonstrating strong trading activity in the stock.

The stock has outperformed the broader market and most of its peers in the last few weeks. On a YTD basis, the stock generated over 5% returns while the broader index Nifty 500 has generated about negative 4% returns. The above points sum up the overall bullishness of the stock.

With this, the stock is expected to trade higher in the coming days. It has the potential to test the levels of Rs 1315, followed by Rs 1330 in short to medium term.