This small-cap stock jumped 29 per cent in last two days, trades at 1.3 price-to-book value with improving net cash flow; watch out!

Interestingly, all these moving averages are in the desired sequence and in a rising trajectory

The first day of the week turned out to be a ‘Black Monday’ for the Indian benchmark indices as Nifty and Sensex tumbled over 2.5 per cent each amid a weak session on Wall Street during Friday’s trade, which settled with sharp losses. The main reason for the sharp fall on Wall Street was the US CPI, which accelerated at the fastest rate since 1918. Furthermore, the US consumer sentiment index for June dropped to 50.2, the lowest value in this decade.   

On one hand, the market participants are worried about the fact that Federal Reserve may continue to aggressively hike rates in the second half of this year while on the other hand, the crash in consumer sentiment is indicating that consumers are concerned about future economic conditions, confirming that global GDP growth is slowing.   

Amidst all this chaos, there was one stock on Dalal Street that posted towering gains for the second consecutive day on Monday. The stock name is Marathon Nextgen Realty Ltd, which zoomed over 7 per cent on Monday, and with this sharp move, the stock has registered a fresh 52-week high. Interestingly, the volume traded for the day was the highest ever seen, which was close to 17.8 lakh shares.   

Marathon Nextgen Realty Limited is a holding company engaged in the business of construction, development, and sale of commercial & residential real estate projects. The company focusses on the slum rehabilitation and high-end residential segment.  

The stock had witnessed a breakout of a triangular-like pattern on June 10 and thereafter, there was no looking back for the stock as it went from strength to strength. As a result, the stock climbed nearly 29 per cent in the last two days on the back of the robust volume.   

 Technically, the stock is trading above its 20, 50, 100, and 200-DMA. Interestingly, all these moving averages are in the desired sequence and in a rising trajectory. Also, the company is able to improve its net cash flow over the last couple of years. Hence, the outlook for the stock is bright and sunny!