This small cap multibagger stock surged 7 per cent on Tuesday! Don’t miss the technical breakout level

This multibagger smallcap stock is in strong uptrend and has generated more than 215 per cent returns in just 10 months.

On Tuesday, Nifty continued its previous trend and slipped 0.76 per cent because of the global weakness. It is still struggling for a bounce back but one small cap stock from Fasteners industry grabbed investors’ attention and rallied 7 per cent with good volumes.   

Interestingly, this multibagger Smallcap stock is in strong uptrend and has generated more than 215 per cent returns in just 10 months. The stock is Sterling tools (NSE Scrip code : STERTOOLS), which manufactures and markets high tensile cold forged fasteners primarily for the automobile industry.   

The company with Rs 1,320 crore market cap has been maintaining a healthy dividend pay-out of 17.2 per cent. The Domestic Institutional Investors (DIIs) holds 5.33 per cent stake of the company. This stock is in strong uptrend which generated returns of more than 215 per cent from the lows of May 2022 and made a high of Rs 394 in February 2023. However, it then lost its momentum and start consolidation in the range of Rs 394 on higher side and Rs 315 on lower side. Interestingly, it is where the bulls came in action with volumes and the stock bounced back 15 per cent from the lows of February 2023 and currently trades at Rs 366.

Now STERTOOLS share price is near to its technical breakout and recorded massive volumes in the initial hours of Tuesday’s session. RSI on Daily charts is near to its prior support of swing low in the range of 45 – 60. The short-term moving averages 5-13-25 DMA have given bullish crossover, thus confirming a strong momentum. Close above 380 will confirm this breakout. Swing traders and investors should add this stock to watchlist and track it in upcoming trading sessions.