Chart Check: 70% return in a year! Uptrend intact in this smallcap that hit 52-week high

Voltamp Transformers, part of the S&P BSE Smallcap index, rose more than 70 per cent in a year compared to a flat Nifty50 return seen in the same period but the rally may not be over yet going by technical parameters.

The stocks from the heavy electrical equipment space hit a fresh 52-week high of Rs 2,569 on the BSE on 20th June 2022. The stock was moving in a higher high and higher low formation since May 2022.

It gave a breakout above its crucial 50-DMA on the daily charts on 25 May 2022 which gave an additional boost to the stock. It is now trading above crucial long-term moving averages such as 100 and 200-DMA.


However, it is trading below the 5 and 10-DMA. The stock closed with gains of over 1 per cent at Rs 2366 on 21 June 2022.

The stock has shown resilience in the last few months. It fell a little over 3 per cent in a week but rallied more than 26 per cent in a month, and over 16 per cent in the last 3 months, Trendlyne data showed.

The S&P BSE Small-cap index has fallen over 8 per cent in a month and more than 13 per cent in the last 3 months.

The uptrends remain intact and investors looking to put fresh money can do now or on dips towards Rs 2,352-2,233-2,137, suggest experts.

“The stock price started its up move from Rs 986 (March 21). The stock made a high of Rs 2,225 in Dec 2021 accompanied by higher bottoms and top formation,” Bharat Gala, President - Technical Research, Ventura Securities, said.

“Super trend turned positive since June 2021 till date. The stock consolidated in the range of (Rs 2,250-1,950) from December 22 to May 22. The stock always traded above averages and never breached the 52-week average,” he said.

A ‘Supertrend’ indicator is one, which can give you a precise buy or sell signal in a trending market. As the name suggests, it is a trend-following indicator just like moving averages and MACD (moving average convergence divergence). Also Read

“Recently, the stock gave a range breakout & made a new high of 2545. The Vortex, PVT, KST & MACD indicators suggest a possible firm uptrend. The possible target is 4000 in the next 6 months,” recommends Gala.

“If the stock price corrects downwards the buy levels are (Rs 2,352-2,233-2,137-2,041-2,186). A stop loss to be observed in the trade is 1830,” he added.

(Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of Economic Times)