Top trending stock on Friday: Advance Enzymes Technologies

Advanced Enzyme Technologies Ltd is a Biotech company that creates and provides eco-friendly solutions. It is a smallcap company with a market capitalization of over Rs 3200 crore. It is one of the most promising companies in its sector.

The stock of Advance Enzymes soared by a massive 18.06% on Friday’s trading session. After falling over 25% in the past few trading sessions, the stock has witnessed strong buying interest at lower levels. It made a sharp recovery from the levels of Rs 260 and gained about Rs 46 since then. The volume was significantly higher on Friday, and much greater than 10-day, 30-day and 50-day average volumes. With such strong price action, the stock has surged above its 20-DMA.On the daily technical chart, the stock has seen the formation of an open=low candle, which is a sign of bullishness. Moreover, on the weekly chart, the stock has formed a strong hammer-like candle, which demonstrates strong buying at lower levels. It is a sign of potential trend reversal, as the candle is supported by heavier volumes.

The stock was largely oversold, and 14-period daily RSI has seen a strong jump from its oversold region. It is currently placed above 50 and indicates improved strength in the stock. The negative MACD histogram has also seen a sharp fall and points towards a potential trend reversal. Along with this, the On Balance Volume (OBV) has seen a spike and hints towards a change in sentiment. The other momentum oscillators have also indicated an improvement in stock performance.

In such high volatile market, it is best to keep up with stocks that have shown improved strength. The stock is attractive for short to medium, as described by the daily and weekly charts. Moreover, it has the potential to generate decent returns for the period and positional traders and investors can expect the stock to perform well in the future.