Multibagger stock rises 200% in one year. Sumeet Bagadia see 45% gain in 3-month

Highlighting the reason for being bullish on Sutlej Textiles share price; Sumeet Bagadia, Executive Director at Choice Broking said, “On a monthly chart, this multibagger stock has given a breakout of rounding bottom formation at 52 level and made a high at ₹81.20 levels but later consolidated in a range and finally managed to break the resistance level and made a new high at ₹88.75 levels. Moreover, the stock has given breakout of its 52-week high with increase in volume activity and trading near its March 2018 high i.e., ₹87, which suggest strength for upside in the counter.”

“On a daily chart, the stock has formed a Bullish Engulfing candlestick pattern, which indicates a upside move in the counter. Additionally, Sutlej Textiles share price has also moved above the upper leg of Bollinger Band, which suggests a bullish rally to continue further in the near-term. Furthermore, the stock has been trading above 21×50 Days Moving Averages (DMA) with a bullish crossover which shows a positive trend for the time being,” said Bagadia.

Advising stock market investors to buy Sutlej Textiles shares; Sumeet Bagadia said, “One can initiate a long position in Sutlej Textiles shares at current market price of ₹87 or a fall in the price till ₹82 levels can be used as buying opportunity for the upside target of ₹100 to ₹125 while the support is placed at around ₹75 or ₹70 levels. So, a stop loss on closing basis of ₹70 should be placed at lower levels.” The Choice Broking expert said that given target of ₹125 can be expected in next 2 to 3 months.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.