Thursday’s session has been a weak one for the Indian markets. The US Fed’s 75 bps rate hike coupled with a hawkish commentary for the rest of the year has spoiled the party for the bulls. The benchmark index is currently trading with a cut of 0.84% to 17,570 by 12:38 PM IST. More importantly, the Indian rupee has depreciated to an all-time low of 80.75 against the US dollar in today’s session, reflecting a loss of around 1%.
Nonetheless, if looked closely, a few long opportunities could be spotted in today’s weak market as stock-specific action is still there. One company that is gaining traction is Borosil Renewables Limited (NS:) which is INR 7,569 crores big firm that manufactures housewares.
Image Description: Daily chart of Borosil Renewables with volume bars at the bottom
Image Source: Investing.com
As the market is in deep red, investors are showing confidence in the shares of Borosil Renewables. The stock surged 5% to INR 609 in today’s session which is a commendable gain looking at the broader market conditions. In the midst of the rally, the stock soared above its falling trendline resistance which is signaling a trend reversal from a downward trend to an up trend. Also, the previous swing high of around INR 593, marked on 12 September 2022 has also been breached comfortably, which also shows the stock has changed its structure.
Now as the stock is trading above the trendline resistance investors can expect the rally to continue till the level of around INR 660 which is the next immediate resistance on the daily chart. Till this level, there is virtually no supply zone that could halt the stock till this resistance.
The volume for the day so far has been recorded at 1.82 million shares which is the highest one-day volume in around 5 months, and there are still a few hours left for the session’s close. Therefore, strong volume support is also there, backing the breakout.
On the other hand, if the stock retraces and falls back below the previous swing high then it could take support around INR 560, which is the previous swing low. However, a level of INR 590 – INR 595 could act as an immediate support level (previous resistance peak).
The RSI (14) on the daily chart is strongly trending upwards, depicting a positive momentum in the stock. Also, the current reading of 61 is the highest since April 2022, which increases the confidence of investors trying to capitalize on the current momentum.