Equity Market: Stock Soars 70% in 4-Day with Pullback Power
Stock Market & BSE Bull ! (Image credit BSE India)
Value Buying Brings Strength in Stock Market
By S Jha
New Delhi, March 8: Intense value buying has gripped stock market. Investors are seen lapping small and midcap stocks after sharp corrections.
A strong rally in the shares of Reliance Industries steadied stock market in yesterday’s session. Nifty closed the day on flat note. Sensex and Bank Nifty also struck flat tones.
Shares of Reliance Industries extended winning momentum for the second consecutive day. The heavyweight scrip had plummeted to 16-month low in recent corrections.
A strong rally in shares of Reliance Industries brought confidence to traders to stay firm despite global equity markets’ upheavals. With Nifty holding over 22500, market participants are betting on gains next week. It may be noted that the 50-share index is currently above the short-term resistance per StockEdge.
“Investors are adding scrips which corrected sharply in recent months. Sharp rally in such counters is seen,” said a market participant.
Shares of Triveni Turbine buzzed on the street. The scrip gained almost 70 per cent in just four sessions. The supplier of power equipment has taken the Dalal Street with storm.
Shares of Triveni Turbine had crashed to the level of ₹478 on March 3. The scrip closed the day on Friday at ₹613. Shares of Triveni Turbine had been in correction phase since November 27 last year.
The shares of Triveni Turbine had peaked at ₹834 on November 27 last year. From the high of ₹834, the scrip came crashing to ₹478 on March 3. This translated into a whopping erosion of investors’ wealth.
But after the value buying returned to the street, shares of Triveni Turbine refuse to look back. On the way up, the scrip broke through the last pullback high of ₹588. The next pullback high, which may act as a resistance is placed at the level of ₹670.
The market cap of Triveni Turbine is ₹19500 crores. The face of value of shares of Triveni Turbine is ₹1. The ROCE (Return on Capital Employed) of Triveni Turbine is healthy 38.3. Return on Equity for Triveni Turbine is 28.5.
Incidentally, the foreign institutional investors (FIIs) have not sold shares of Triveni Turbine. The holdings of FIIs remain unchanged at 28 per cent in the December quarter.
(Disclaimer: This article makes no recommendation for any kind of trade in the stock market)
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