Technical Check: 100% in 1 year! This electrical equipment maker could rally about 60% post range breakout; here’s why

Triveni Turbine Ltd rallied more than 100 per cent in the last one year compared to 25 per cent upside seen in the Nifty50 in the same period, but the rally may not be over yet as experts see another 60 per cent gain in the next 6 months based on a technical breakout.

The company with a market capitalization of more than Rs 6,300 cr hit a 52-week high of 229 on 11th November and then the trend turned sideways. The stock fell to Rs 157 on 29th November and then bounced back.

The stock moved in a 30-point range in November to January period. A sharp rally on 14 January confirmed a range breakout on the daily charts which were accompanied by strong volumes.

It is a good buy on dips stocks and investors can hold the stock for a potential target of Rs 325 in the next 6 months which translates into an upside of over 60 per cent from Rs 199 recorded on 18 January.

Technically, the stock is trading well above short and long-term moving averages of 30,50,100, and 200-DMA.

In terms of shareholding, foreign investors increased their holding from 14.5 per cent in the September quarter to 16.11 per cent in the December quarter, data from Trendlyne showed.

However, mutual funds decreased their holding from 13.05 per cent in the September quarter to 12.38 per cent in the December quarter, data showed.

The consensus recommendations from 3 analysts for Triveni Turbine is a buy, data from Trendlyne showed. The company is an original equipment manufacturer of steam turbines in India and is also a pioneer in Steam Turbine Maintenance, Steam Turbine Solutions, Steam Turbines Spare Parts Supply, etc.

Triveni Turbine Ltd. is a leading industrial steam turbine manufacturer, with a dominant market share of over 60% in India, said the company website.

Over 5,000 steam turbines supplied by Triveni have been installed across 20 industries in over 70 countries, including Europe, Africa, Central & Latin America, SE Asian, and SAARC countries.

Technically, the stock price started its up move from 107 (Aug 2021) to 229 (Nov 21), making a series of higher bottoms.

“A technical correction in the form of profit booking followed and the stock made a low of 158.6 on Nov 21. With a series of higher bottom formations the stock traded in a range of 155 to 195 Price Zone from Nov 21 to Jan 2022,” Bharat Gala, President - Technical Research, Ventura Securities Ltd, said.

“Recently, the stock gave Range breakouts & made a high of 204 accompanied by supportive volumes. The KST, Demand Index & MACD Indicator suggest a possible up move,” he said.

Gala further added that the possible target is 325. If the stock price corrects downwards the buy levels are (193-187)-181-(176-172). A stop loss to be observed in the trade is 162.

(Disclaimer: The views/suggestions/advices expressed here in this article is solely by investment experts. Zee Business suggests its readers to consult with their investment advisers before making any financial decision.)