Indian Markets: This Stock Hits 10% UC Amid Stellar Q4

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HB Stockholdings Surges on Strong Q4 Results

While the Indian markets witnessed some selling pressure after a green opening on Wednesday, some counters attracted heavy buying. One such stock is HB Stockholdings which is a non-banking financial and non-deposit-taking company, that engages in securities investment activities in India, having a market capitalization of a mere INR 70 crore.

After reporting a 1,187% YoY jump in Q4 FY24 net sales to INR 5.74 crore and a net profit of INR 4.35 crore, over a loss of INR 7.03 crore in the same period last year, investors were cock-a-hoop and went on a buying frenzy.

Daily chart of HB Stockholdings with volume bars at the bottom. Source: Investing.com

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.

This article was originally posted on FX Empire

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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