Technical Check: 100% returns in a year! Delta Corp's trendline breakout supports bullish bias

Delta Corp Ltd rallied more than 100 percent in a year compared to 17 percent upside seen in the Nifty50 in the same period but the momentum may not be over yet, suggest experts.

The stock has been on buyers’ radar even when bears dominated D-Street amid geopolitical concerns. The stock rose over 13 percent in a week, and over 24 percent in a month. On a 3-month basis, the stock has rallied over 22 percent, data from Trendlyne showed.

Investors who are already invested in this stock can look to hold the stock while fresh money can be deployed now or on dips for a possible target of Rs 360-390 in next 3-4 months, suggest experts.

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Delta Corp which is part of S&P BSE 500 index has a market capitalization of more than Rs 8600 cr. It hit a 52-week high of Rs 329.60 on 28 March. The stock has been on a one-way trend after it hit a low of around Rs 240 back in February.

The stock is trading above all the short- and long-term moving averages placed around 30,50,100 and 200-DMA. The stock recently surpassed 30-DMA placed at 276.50 on 9 February, data from Trendlyne showed.

In terms of shareholding, FIIs reduced stake to 5.8 per cent in the December quarter while mutual funds increased stake from 6.7 per cent in September quarter to 10.83 per cent in the December quarter, data showed.

Delta Corp has been moving with higher highs and higher lows formation since March 2020. Recently, the stock has broken out of a 6 months long consolidation with sharp increase in volumes indicating start of new bullish trend.

“In the current week the stock is forming a bullish Marubozu candle and is comfortably sustaining above the 20-week SMA (278). The RSI indicator on all timeframes i.e Daily, Weekly and Monthly is sustaining above the 60-mark indicating strong bullish momentum in the counter,” Malay Thakkar, Technical Research Associate, GEPL Capital, said.

“Relative Strength Index (RSI) plotted on weekly timeframe has given a trendline breakout and is confirming the bullish view. Going ahead we expect the prices to move higher towards 360 followed by 390 levels,” he said.

Thakkar further added that 280-285 zone will act as an important support on the downside for this counter.

(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.)