Despite the fact that the broader markets ended the session in the green, selling activity was evident today. The Nifty Small cap 100 index suffered a significant loss of 0.94%, falling to 11,317.2, however one company from this sector defied the trend: NMDC (NS:NMDC) Steel Ltd (NS:NMDS). It produces iron ore and has a market valuation of INR 12,880 crores. FII and mutual fund stakes are 3.29% and 4.56%, respectively.
It just demerged from NMDC and floated on the Indian stock exchange on February 20, 2023. Since that time, the stock has been steadily moving upward. It reached an all-time high of INR 46.5 on June 7, 2023, and then began to consolidate in a sideways trend. This maneuver formed a U-shaped bottom, which is an excellent base configuration.
This curving bottom represents a shift in the demand and supply equation over time, which is always preferable to a sudden change. The stock increased by 3.87% today, reaching INR 45.65, breaking through the resistance of INR 45 to INR 45.5, and reaching an all-time high of INR 47.2. A large increase in volume of 14.7 million shares, the biggest level in more than 1.5 months, also contributed to this breakthrough. Although it is challenging to set goals at an all-time high, the stock appears poised to rise above INR 50 in the next sessions. Typically, a stop loss is placed at the lower end of the base, which in this instance is at INR 42.
Source: https://in.investing.com/analysis/stock-under-rs-50-breaks-out-toward-ath-gains-4-200592019