Top Trending stock: Salzer Electronics Limited

Salzer Electronics Limited is engaged in the business of computer-aided manufacturing operated rotary switches, and wires and cables.  

Salzer Electronics is a smallcap company, with a market cap of Rs 356 crore. The company has been able to successfully generate increased revenue and net profits on a year-on-year basis. However, the operating margins have always been an issue for this company which the management assures to be taken care of. Moreover, the company has reported an increase in its market share and higher industry revenue growth in the last five years.  

Last year, the stock performed phenomenally on the exchange as it delivered about 74% returns to its investors. The short-term performance has remained strong, too, as it reported about a 10% increase in its value in just one month. Thus, the stock has outperformed most of its peers.  

A major portion of the company is held by the public (about 60%) while the promotors and foreign institutional investors hold 32% and 8% stake, respectively.  

The stock has surged by a massive 11% and looks to test its 52-week high of Rs 235. It made a sharp recovery after taking support at its 100-DMA. The bullish nature can be confirmed by the huge volume, which indicates active participants of market players. The volume registered in the first half of the session has already been 5 times the previous day’s volume. Moreover, the RSI has entered the super bullish territory. All the moving averages are rising upwards which hints towards the bullish sentiment of the stock. The trend indicator ADX suggests strong trend strength of the stock and has the potential to soar in the coming days. According to the Fibonacci retracement, it can scale as high as Rs 320-level in the medium to long term.  

With the stock being technically strong and fundamentally sound, it deserves to be on the trader’s watchlist.