Is UTI AMC stock taking support on uptrend-line?

UTI Asset Management Company (AMC) started trading on the stock exchanges on October 12, 2020. This stock was offered at the price of Rs 554, which is its upper price band. However, on listing day, it opened at Rs 500 and went up to Rs 529.95 before ending its first trading day at Rs 476. This is near about 14 per cent fall from the initial public offering (IPO) price. Those investors, who had invested for listing gains, might have felt trapped.

Thereafter, UTI AMC moved into a consolidation phase and stayed there till November 20, 2020, and after that, it gave a strong breakout to close at 522.25 levels. Besides, recently, it made a high of Rs 579.80, which was above its IPO price. However, this cheer was short-lived as the price again started moving southwards and is currently trading near its IPO price.

The above chart clearly shows that it has not yet broken down its uptrend (green line). Also, the purple rectangles are its support and resistance zones, respectively. Presently, it is trading in the support zone. Therefore, it might probably move up from here. Having said, traders should maintain strict stop-loss.

Resistance zone: 575 to 580

Support zone: 550 to 555

Disclaimer:

This article is just for understanding purpose and should not be considered as a recommendation. Readers are advised to do their own research before making any investment decision. Further, DSIJ and its authors are not responsible for any kind of losses caused.