Aptus Value Housing Finance India erased more than half of its intraday gains and traded with around 5 percent gains in afternoon on March 10, although there was no significant sell-off in the overall broader markets. The Nifty50 and Nifty500 corrected 1 percent each.
The stock has formed a bullish candlestick pattern with long upper shadow on the daily charts, indicating profit-booking at higher levels. For the third session in a row, it has been trading within the range of March 6 when it had rallied nearly 18 percent.
The stock went on a downhill drive since December 30, falling more than 26 percent, before showing a sharp rebound on March 6. Its trading volumes remained above average throughout this week. When compared with the issue price of Rs 353, it is still around 26 percent.
Aptus was trading at Rs 258, up 5 percent, at 2:55pm on March 10.
Going ahead, the intraday high of March 6, Rs 284 is expected to be crucial for further uptrend in the stock price, followed by which the next resistance could be in the Rs 295-320 area, with support at Rs 238-234, the recent lows, experts said.
"Recently, after getting steeply oversold, Aptus has attempted a sharp up-move while trying to put a bottom in place. While the broader trend still remains down, higher volumes indicate that the momentum may continue," Foram Chheda, CMT, a Technical Research Analyst and Founder of ChartAnalytics.co.in, said.
With hope of continuing momentum, she said the stock may test Rs 294-295 levels where there is a confluence of the 100-and 200-DMA (day moving average). This presents an opportunity for a swing trade; one can continue to hold this stock with an upside potential of 8.9 percent from the current levels, she feels.
On the weekly scale, the stock has formed big bullish candle with an upper shadow, indicating profit-booking at higher levels, while on the monthly timeframe, there was a bullish candle formation which somewhat resembles a bullish harami kind of pattern (though not exactly), making lower highs for the sixth straight month.
"On the weekly charts, the stock respected its previous swing low support at Rs 220 and bounced back from Rs 234 by forming big bullish candle with huge volume confirmation and sustaining above its three-week's high which shows strong participation at lower levels," Vidnyan Sawant, AVP - Technical Research at GEPL Capital, said.
Momentum indicator like RSI is sustaining around 50 mark on the daily scale indicating gaining positive momentum of the stock. Hence, important levels to watch for the counter Rs 310-340 on the higher side with support at 238-220.
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