Multibagger stock rose 200% in one year. Sumeet Bagadiya sees a rise of 45% in 3 months

Highlighting the reasons for the rally in the share price of Sutlej Textiles; Sumeet Bagdia, Executive Director, Choice Broking said, “On the monthly chart, this multibagger stock has given a breakout of the rounding bottom formation at 52 levels and formed higher levels. 81.20 level but later consolidated into a range and finally managed to break the resistance level and made a new high 88.75 level. Furthermore, the stock has given a breakout from its 52-week high with an increase in volume activity and trading near the March 2018 high. 87, which suggests strength for the counter bullish.”

“On the Daily chart, the stock has formed a Bullish Engulfing candlestick pattern which indicates an upside move in the counter. Additionally, Sutlej Textiles share price has also moved above the upper edge of the Bollinger Bands, which is further Suggests a bullish rally to continue. In the near term. Moreover, the stock is trading with a bullish crossover above the 21×50 Days Moving Average (DMA), indicating a positive trend for some time. It shows,” said Bagadia.

Advice to stock market investors to buy shares of Sutlej Textiles; Sumeet Bagdia said, “Anyone can open a long position in the shares of Sutlej Textiles at the prevailing market price. 87 or until the price drops 82 level can be used as a buying opportunity for an upside target from 100 125 while the support is placed at approx. 75 or 70 levels. So, based on the closing of the stop loss 70 should be kept at lower levels.” The Choice Broking expert said that given the target 125 can be expected in the next 2 to 3 months.

Disclaimer: The views and recommendations given above are those of individual analysts or broking companies and not of Mint.