Indian Markets: This Stock Hits 10% UC Amid Stellar Q4
HB Stockholdings Reaches All-Time High
By 9:55 AM IST, the share price of HB Stockholdings rallied 10% to hit the upper circuit limit of INR 108.8 on the NSE, on the back of a volume of 56.5K shares. This figure has already surpassed the 10-day average volume of 32.28K shares recorded yesterday, and it hasn’t been even an hour into today’s trading session.
The stock is not just trading at an all-time high but it has also breached its falling trendline resistance on the daily time frame. This translates into a bullish signal after a very short-term correction and therefore investors can keep the stock on the watchlist.
Entry Points and Risk Management
As the stock is now in uncharted territory, it’s a bit tricky to estimate the upside potential in the current leg of the rally. However, looking at the brief consolidation prior to the move, the stock can further stretch the rally to INR 135, projecting a healthy upside of 25%.
As the counter has moved a bit in the last three sessions, a retracement towards the breakout level might provide a better entry point for those looking to participate in the rally. Risk management is extremely important despite a beautiful setup. In this case, a stop loss below INR 95 which is where the stock broke above the falling trendline might be sufficient to curb the risk in case it takes a U-turn.
