This Navratna stock is heading for 10-year breakout; something big is on the cards!

It has jumped over 5 per cent while on an MTD basis, it gained over 9 per cent. With this upmove, the stock is on the verge of a multi-year breakout.   

Shipping Corporation of India (SCI) has today evolved into the largest Indian shipping company. SCI also has substantial interests in various segments of the shipping trade.  

As the country’s premier shipping line, SCI owns & operates around one-third of the Indian tonnage and has operating interests in practically all areas of the shipping business, servicing both national as well as international trades.  

The Government of India had conferred Navratna status to SCI on August 1, 2008, enhancing autonomy and delegation of powers to the company towards capital expenditure, formation of joint ventures, mergers, etc.  

The stock is seen buzzing on the bourses on Monday as it has jumped over 5 per cent while on an MTD basis, it gained over 9 per cent. With this upmove, the stock is on the verge of a multi-year breakout.   

The stock made a high of Rs 136.40 in the year 2011 and thereafter, it has never been able to cross this high. With the strong move seen in the stock, the stock is seen challenging the highs of 2011. Going forward, if the stock manages to sustain above Rs 136.40, it would result in a multi-year breakout i.e, a 10-year breakout.   

Interestingly, the RSI on the daily timeframe is in the super bullish range (60-80) and when the stock is in a strong uptrend, it is observed that the RSI refrains from slipping below the 60-mark. The inability of the RSI to go below the 60-mark indicates that the RSI is in super bullish territory. Furthermore, the ADX on the daily timeframe is above the 30 mark, which indicates strong trend strength. Moreover, the +DI line is much above the ADX as well as the -DI line, which indicates that the bulls are in the driving seat. Hence, keep a close watch on this stock.