Price action suggests that the stock is likely to extend the rally towards its 200-day SMA placed at 63-odd level, says Vinay Rajani of HDFC Securities.
Tejas Networks share price surged 5 percent intraday on July 10, hitting the upper circuit for the third consecutive session.
The share price rose a day after Kedia Securities, owned by investor and trader Vijay Kedia, acquired a 0.81 percent stake in the company for Rs 3.7 crore through open market transactions.
Kedia Securities bought 7,53,925 equity shares in Tejas at Rs 49.13 per share, bulk deals data available on the National Stock Exchange showed.
The scrip was trading at Rs 54.35, up Rs 2.55, or 4.92 percent at 1144 hours. It touched an intraday high of Rs 54.35 and an intraday low of Rs 52.40. There were pending buy orders of 58,223 shares, with no sellers available.
According to Vinay Rajani, Technical Research Analyst at HDFC Securities, Tejas Network broke out from the “Flag” pattern on the daily chart. Price action suggests that the stock is likely to extend the rally towards its 200-days SMA placed at 63-odd levels.
A break above Rs 63 can take the stock towards the next target of Rs 75. A stoploss can be placed below Rs 46, he added.
According to Moneycontrol SWOT Analysis powered by Trendlyne, Tejas Networks has zero debt, with FII / FPI or institutions increasing their shareholding.
Moneycontrol technical rating is very bullish with moving averages and technical indicators being bullish.
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