1 min read.Updated: 26 Nov 2021, 01:36 PM IST Edited By Asit Manohar
Multibagger stock: The small-cap textile stock has risen from around ₹29 to ₹87 in lat one year, logging near 200 per cent rise in this period
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Multibagger stock to buy now: Sutlej Textiles shares are one of the multibagger stocks in 2021. The small-cap textile stock has risen from around ₹29 to ₹87 in lat one year, logging near 200 per cent rise in this period. However, Sumeet Bagadia of Choice Broking believes that Sutlej Textiles share price may go up to ₹125 levels in next 2 to 3 months, delivering around 45 per cent return to its shareholders from its current ₹87 per share levels.
Highlighting the reason for being bullish on Sutlej Textiles share price; Sumeet Bagadia, Executive Director at Choice Broking said, "On a monthly chart, this multibagger stock has given a breakout of rounding bottom formation at 52 level and made a high at ₹81.20 levels but later consolidated in a range and finally managed to break the resistance level and made a new high at ₹88.75 levels. Moreover, the stock has given breakout of its 52-week high with increase in volume activity and trading near its March 2018 high i.e., ₹87, which suggest strength for upside in the counter."
"On a daily chart, the stock has formed a Bullish Engulfing candlestick pattern, which indicates a upside move in the counter. Additionally, Sutlej Textiles share price has also moved above the upper leg of Bollinger Band, which suggests a bullish rally to continue further in the near-term. Furthermore, the stock has been trading above 21x50 Days Moving Averages (DMA) with a bullish crossover which shows a positive trend for the time being," said Bagadia.
Advising stock market investors to buy Sutlej Textiles shares; Sumeet Bagadia said, "One can initiate a long position in Sutlej Textiles shares at current market price of ₹87 or a fall in the price till ₹82 levels can be used as buying opportunity for the upside target of ₹100 to ₹125 while the support is placed at around ₹75 or ₹70 levels. So, a stop loss on closing basis of ₹70 should be placed at lower levels." The Choice Broking expert said that given target of ₹125 can be expected in next 2 to 3 months.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.