Swing Breakout: Low price PSU stock with attractive dividend yield has witnessed breakout of tight range!
Saving grace: Low price PSU stock surges over 5 per cent amid tough times on D-street
The week gone by was one of the roughest weeks for the bulls on D-Street as the NSE benchmark Nifty50 index declined over 2.5 per cent and closed below the important psychological mark of 17,500.
Talking about the sectoral index’s performance, this will help to gauge how heavy was the week gone by as none of the sectoral index managed to eke out gains. In fact, there were four sectors which plummeted more than 5 per cent on a weekly basis. Nifty Metal and Nifty Realty led from front with losses of 6.27 per cent and 5.75 per cent, respectively. While Media and PSU Bank lost 5.4 and 5.07 per cent, respectively.
Amid this chaotic backdrop, there was one PSU stock, which garnered a lot of attention and it was the saving grace for the bulls’ camp.
The stock is Gail (India) Ltd., which on Friday itself surged over 5 per cent with nearly 4.52 crore volume, which was greater than its prior trading session and highest in the last couple of months. On a weekly basis, the stock has jumped nearly 8 per cent and with this strong up-move it has outperformed the frontline indices and even the broader markets.
Talking about the technical view, the stock has witnessed breakout of the tight range with a massive volume and closed above the moving average ribbon and its key short-term moving averages. The MACD has given a fresh buy signal, while the RRG RS line and momentum has shot above the 100 and entered the leading quadrant.
The 14-period daily RSI has sharply come out of the squeeze area and it has entered a bullish territory. The Elder impulse system has formed a strong bullish bar and the KST and TSI indicators have given a fresh bullish signal. It also cleared the Anchored VWAP resistance. In short, the stock broke the tight range with a massive volume. Hence, swing traders can keep a close watch on this stock. What’s cherry on the top is the fact the stock has a dividend yield of close to 6 per cent.