• Sat. Dec 2nd, 2023

Swing Trade: Stock rallies 6% this week on increasing volume!

Swing Trade: Stock rallies 6% this week on increasing volume!

This week was a good one as benchmarks and indices surged to all-time highs. As the bull run resumes, skewing your portfolio on the long side may prove more effective than trying to hold on to the top.

One stock that has popped up on my radar and is looking good for the next week is GIC Housing Finance Ltd (NS: ). It is engaged in the housing finance business and has a market capitalization of Rs 997 crore.

Looking at valuations, the stock is one of the cheapest in this space with a P/E ratio of 4.68 compared to the sector average of 15.46. The stock trades below its book value, with a P/B ratio of just 0.66 and a respectable dividend yield of 2.43%, making it attractive to dividend lovers. FIIs held a stake of 1.41% in March 2022, increasing it to 2.04% by the end of June 2023.

Image caption: Volume bars below deal chart of GIC Housing Finance

Image source: Investing.com

On the technical front, the stock witnessed a good rally this week, rising 6.41% to INR 192.65, depicting a strong uptrend. Looking at the daily chart, the stock has been rising for the last three sessions and on Friday it broke through the previous resistance of Rs 190. This hurdle break instilled a new confidence in the upcoming breakthrough and formation of higher heights. Highs and lows remain unchanged.

The volume function was also interesting. As the stock has been rising for the past three sessions, volume has also risen. On Friday, a total of 973.2K shares were recorded on the NSE, which is 230% higher than the 10-day average of 294.3K shares, which is not bad.

Don’t be surprised if the stock touches Rs 208 in the coming days. Due to the 3-day sharp move, the stop loss was reduced slightly to Rs 176.

Leave a Reply

Your email address will not be published. Required fields are marked *