Trending stock: Astra Microwave Products Ltd

On Monday, the stock soared about 8.11% and recorded huge volumes.

Astra Microwave Products Limited is a smallcap company engaged in designing and manufacturing radio frequency and microwave super components and sub-systems finding applications in various sectors. With a market capitalization of about Rs 2300 crore, it is one of the strong growing company in its sector. The stock has attracted the trader’s attention due to its recent price action.

On Monday, the stock soared about 8.11% and recorded huge volumes. On the technical chart, it formed a strong bullish candle with a lower shadow and closed nearly at the day’s high. After registering a swing high of Rs 284, the stock corrected about 11%. However, it found a good support at its 20-DMA and received strong buying interest. The volume was found to be greater than 10-day, 30-day, and 50-day average volume.

Along with its strong price structure, several technical indicators point towards the bullishness of the stock. The 14-period daily RSI (65.97) indicates strong strength in the stock. The 14-period daily ADX (43.47) indicates a strong uptrend of the stock. Interestingly, the On Balance Volume (OBV) is improving which indicates increasing interest among the market participants to buy this stock. The Elder Impulse System indicates a fresh buy in the stock. Meanwhile, the KST and TSI indicators have a bullish view of this stock.

Recently, the stock has outperformed the broader market. On a YTD basis, it has generated about 16.74% returns. In the last one month, the stock has gained over 22% and thus, displays short term bullishness. Considering its strong price action, above-average volumes, and bullish technical parameters, the stock is expected to trade higher in the coming days. It has the potential to test its prior swing high of Rs 284 in near term, followed by Rs 300 thereafter. It presents a good opportunity for swing trading. Positional traders can expect good returns from this technically strong stock.