Stock below Rs 50: This micro-cap has registered a 19-month long breakout with the highest volumes; don't miss out!

The stock recorded a volume of over 9 lakh shares, the highest in the current calendar year, almost five times its 10-day average volume.

On Friday, the bulls made a strong comeback, driving key benchmark indices (Sensex and Nifty) to trade higher by nearly 0.70 per cent. The broader markets also showed a positive trend, with Nifty Midcap and Small-Cap up by 0.81 and 1.20 per cent, respectively.

Amidst this market buoyancy, there's one stock that demands attention - Elgi Rubber Company Ltd. Established in October 2006 as Elgi Aviation Tyres Limited, it later rebranded as Elgi Rubber Company Ltd on April 7, 2011. Specializing in manufacturing reclaim rubber, tread rubber, bonding gum, and other rubber products predominantly used in the Tyre sector, the company also provides retreading services through a franchisee network.

Elgi Rubber Company Ltd, with a market cap of Rs 238 crore, falls into the micro-cap category. On Friday, the stock witnessed an impressive surge of over 10 per cent on the NSE. What's intriguing is that this upward movement in the stock price is supported by substantial trading volume. The stock recorded a volume of over 9 lakh shares, the highest in the current calendar year, almost five times its 10-day average volume.

Technically, the stock has formed an interesting 19-month long Cup pattern. Should the price sustain above levels of Rs 50, it could potentially result in a breakout, signaling further positive movement. The relative strength (RS line) is also showing improvement, adding to the stock's appeal.

Additionally, all the moving averages are currently in an uptrend and align in a desirable sequence, suggesting a favorable sentiment. The daily RSI has marked a fresh swing high on the daily time scale, continuing to rise, while the weekly RSI remains in a strong bullish zone. The MACD further supports the bullish momentum, and the Elder impulse system has formed bullish bars.

Considering these promising technical indicators, keeping an eye on this hidden gem micro-cap, Elgi Rubber Company Ltd, could prove to be rewarding. So, be sure to include it on your radar!

Disclaimer: The following information is for informational purposes only and should not be considered as a recommendation to invest in any particular stock or security.