Sterling Tools Share Price: Chart Check: After nearly doubling in 3 months, this smallcap stock is on buyers’ radar


Sterling Tools, part of the S&P BSE Small-Cap Index, rose over 95 per cent in the last three months and technical indicators point to further upside in the next 6 months.

The stock with a market capitalization of around Rs 1,000 crore has seen strong price action on a last week as well as a month basis.

It managed to cross the crucial resistance level of around Rs 250 in June 2022 and hit a new 52-week high of Rs 297 on June 28, 2022.

Though Sterling Tools shares came under some selling pressure, experts believe that the bullish trend is still intact which could take it towards Rs 400-500 in next 6 months, suggest experts.

Positional traders can see invest The stock is down now or at the level of 227-205-188-170-160. On the price action front, the stock is trading above the important short and long term moving averages of 5,10,20,30,50,100 and 200-DMA.

The stock bounced back after making a low above Rs 100 in May 2022. Strong price action resulted in the formation of a ‘Golden Cross’ on the daily chart on 27 June 2022.

A golden cross on a chart is formed when the 50-day short-term moving average of a stock or index crosses above its 200-day moving average.

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The stock price rose from Rs 18 (May 2013) to Rs 478 (December 2017) forming a series of higher tops and higher bottoms supported by volumes, which is a positive sign for the bulls.

Bharat Gala, President – Technical Research

Securities, said.

“After profit booking, and in May 2020 the stock was trading at a low of Rs 105 below the average. Two attempts were made to cross the 255 zone but were unsuccessful,” he said.

Currently, the stock formed three positive monthly price candles and crossed the previous resistance of Rs 256 to make a high of Rs 261 – showing interest in the stock.

“KST, Demand Index and PVT indicators indicate buying strength in the stock. Possible target for next 6 months is Rs 400-500. If the share price corrects to the downside then the buy level is Rs (Rs 227-205) – Rs 188 (Rs 170-160). The stop loss to be seen in the trade is Rs 155,” recommends Gala.

(Disclaimer: Recommendations, suggestions, views and opinions given by experts are their own. They do not represent the views of The Economic Times)


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