Spandana Sphoorty share price: Small-cap sock Spandana Sphoorty Financial has been on a roll for the last two days. After skyrocketing 20 per cent in the previous session, the small-cap stock jumped 15 per cent in morning trade on BSE on Wednesday, January 8.
Spandana Sphoorty share price opened at ₹405 against its previous close of ₹402.75 and jumped as much as 15.2 per cent to the level of ₹463.90. Around 10:20 AM, the stock traded 13.16 per cent up at ₹455.75 on the BSE. Equity benchmark Sensex was 0.14 per cent down at 78,089 at that time. Considering the day's high of ₹463.90, the stock has vaulted 38 per cent in just two sessions.
Spandana Sphoorty shares hit a 52-week high of ₹1,243.10 on January 12 last year. The stock, however, has been under pressure since then.
Over the last year, the small-cap stock has fallen over 60 per cent. It hit a 52-week low of ₹305.50 on December 26 last year.
On a monthly scale, its only climb last year was a modest 3 per cent gain in April, standing out as a rare moment of ascent.
The stock is up 38 per cent so far in January, and if it closes the month with gains, it will break its eight-month losing streak.
The small-cap stock is witnessing strong bullish momentum but experts suggest waiting for some time to see whether the sentiment sustains or not.
Jigar S. Patel, Senior Manager of Equity Research at Anand Rathi Share and Stock Brokers, observed that Spandana Sphoorty stock recently reversed sharply from ₹300-odd levels and surged to ₹463 in just three sessions, indicating strong bullish momentum.
Patel pointed out that the MACD has given a positive crossover, further confirming upward momentum. The stock has resistance near ₹500, while support lies around ₹400.
"It is advisable to buy near the support zone for a potential target of ₹500-520. For now, adopting a 'wait-and-watch' approach to monitor price action near these key levels and confirm any further bullish signals before entering is better," said Patel.
Hardik Matalia, a derivative analyst at Choice Broking, pointed out that the stock previously peaked near the ₹1,240 mark before entering a prolonged downtrend. However, in recent sessions, signs of consolidation near key support zones have been shown, indicating a potential base formation. This consolidation phase often suggests a slowdown in selling pressure and the possibility of a trend reversal if supported by strong price action.
Matalia underscored that he sharp upward movement of the last two days has propelled the stock into overbought territory, with the Relative Strength Index (RSI) hovering around 73. While this reflects strong bullish momentum, it also indicates caution as the stock nears overbought levels, which could lead to short-term profit booking.
"Fresh buying is recommended only on a corrective dip towards the ₹400-360 range, where stronger demand zones are visible. This approach would allow for a better risk-reward ratio. A strict stop-loss should be maintained at ₹300 to manage downside risks effectively, as a breach below this level could invalidate the bullish outlook and signal further weakness," said Matalia.
"On the upside, immediate resistance is observed around the ₹530 mark. A decisive breakout above this level could trigger further buying momentum, potentially extending the uptrend towards higher levels. Traders are advised to monitor price action closely around these key levels and follow disciplined risk management strategies given the current volatility," Matalia said.
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