Shanthi Gears zooms in top gear on jumping over 10 per cent after witnessing golden crossover!

Furthermore, the stock has witnessed a golden crossover last week.

Shanthi Gears, a subsidiary of Tube Investments of India, is a pioneer in gear manufacturing and ranks amongst India’s top gear manufacturers today. For over four decades now, Shanthi Gears has been a preferred name of gear & gearbox solutions for some of the biggest names in the industry. We are committed to offering precision engineering, reliable quality, and complete solutions.  

The stock is seen buzzing on the bourses on Monday as it jumped over 10 per cent along with a huge spurt in the volumes. A huge spurt in the volumes indicates strong buying interest by the market participants. We are just halfway through Monday’s session and the volume has already touched nearly 4.5 lakh, which is more than a two-fold jump in the volume when compared with its 50-day average volumes that stand at 1.72 lakh.   

Currently, the stock is trading just 3 per cent away from its all-time high and is above its 20, 50 & 200-DMA. More importantly, the 20 & 50-DMA is trending high and the 200-DMA has also started to move higher. Furthermore, the stock has witnessed a golden crossover last week. A golden crossover occurs when a short-term moving average (50-day) crosses over a major long-term moving average to the upside (200-day).   

The leading indicator i.e. the 14-period daily RSI is in a super bullish zone and also, gave a bullish crossover on Monday. The daily MACD stays bullish as it is trading above its zero line and signal line. The MACD histogram is suggesting a pickup in the upside momentum. The stock is clearly on an uptrend while the trend strength is extremely high. The average directional index (ADX), which shows the trend strength, is as high as 34.25 on the daily chart. Generally, a level above 25 is considered a strong trend.   

Considering the above factors, the stock looks technically solid!