02 Nov , 2021 By : Kanchan Joshi
Shares of realty developer Sobha Limited have given multibagger return this year (year-to-date or YTD) so far as the stock has surged around 110% in 2021. From Rs290 per share level in November 2020, the multibagger stock currently hovers around Rs846 apiece. It is up more than 190% in a year's period.
Domestic brokerage and research firm sees further upside on Sobha shares. “Sobha is in an intermediate uptrend as it has been making higher tops and higher bottoms for the last several weeks and has been consistently finding support at the 20 week SMA," it said in a note as part of its e-margin positional stock pick.
HDFC Securities buy tag on the realty stock comes with a target price of Rs900/980 with stop loss of Rs740, keeping 1-3 months time horizon in mind. The stock was recently consolidating in a range above the 20 week SMA. On Monday, the stock broke out of this range on the back of above average volumes.
“Technical indicators are giving positive signals as the stock is trading above the 20 day and 50 day SMA. Daily momentum indicators like the 14-day RSI have bounced back from oversold levels and are in rising mode now. This augurs well for the uptrend to continue," the brokerage note added.
With the intermediate technical setup too looking positive, HDFC Securities believes the stock has the potential to move higher in the coming weeks and therefore has recommended a buy rating on the realty stock.
Sobha is an Indian multinational real estate company, headquartered in Bengaluru, India. The real estate developer went public by offering its shares through an initial public offering (IPO) in 2006.
0 Comment