12 Dec , 2021 By : Kanchan Joshi
Multibagger stock: Amid world economy reeling under the head of Covid-19 pandemic, Indian stock market has given stellar return 2021. In the market rebound post-Covid selloff, a good number of Indian stocks have entered into the list of multibagger stocks in 2021. Southern Petrochemical Industries Corp or SPIC shares are one of those multibagger stocks in India. In year-to-date time, this multibagger stock has surged from Rs24.40 to Rs51.60 per share levels, logging around 110 per cent raise in this period. However, Sumeet Bagadia of Choice Broking believes that there is still some juice left in this stock and given buy call on the stock for 3-month target of up to Rs68 levels.
On what chart pattern suggests in regard to this multibagger stock; Sumeet Bagadia, Executive Director at Choice Broking said, "On a monthly chart, this multibagger stock has given a breakout of rounding bottom formation at Rs35.40 level and made a high at Rs68.45 levels. But, it showed profit booking from a higher level and made a low at Rs43.10 level, from there the stock has taken support from the horizontal line and showed bounce back movement."
Summet Bagadia of Choice Broking said that on a weekly chart, the multibagger stock has given a break out of Pennant Pattern, which indicates an upside move in the counter. He went on to add that on a daily chart, the stock has given a breakout falling trend line, which points towards northward journey in the counter.
"Additionally, the multibagger share price has also moved above the upper leg of Bollinger Band, which suggests a bullish rally will continue further in near-term. Furthermore, the stock has been trading above 21 and 50 Days Moving Averages (DMA) with a bullish crossover, which shows a positive trend for the time being," Choice Broking expert said.
On his suggestion to positional investors in regard to this multibagger stock, Sumit Bagadia of Choice Broking said, "SPIC share price at around Rs50 should be taken as buying opportunity for the upside target of Rs60 to Rs68, while support for this multibagger stock is placed at around Rs45 or Rs42 levels. So, a stop loss on closing basis at Rs42 should be placed at lower levels."
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